Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity Current Reporting Status | Yes | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | WEYCO GROUP INC | |
Entity Central Index Key | 0000106532 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | WEYS | |
Entity Common Stock, Shares Outstanding | 9,978,790 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and cash equivalents | $ 9,681 | $ 22,973 |
Marketable securities, at amortized cost | 10,820 | 1,525 |
Accounts receivable, net | 39,275 | 51,533 |
Income tax receivable | 649 | 0 |
Inventories | 82,757 | 72,684 |
Prepaid expenses and other current assets | 3,107 | 5,380 |
Total current assets | 146,289 | 154,095 |
Marketable securities, at amortized cost | 17,966 | 18,702 |
Deferred income tax benefits | 1,270 | 1,277 |
Property, plant and equipment, net | 29,460 | 28,707 |
Operating lease right-of-use assets | 23,280 | 0 |
Goodwill | 11,112 | 11,112 |
Trademarks | 32,868 | 32,868 |
Other assets | 23,569 | 23,283 |
Total assets | 285,814 | 270,044 |
LIABILITIES AND EQUITY: | ||
Short-term borrowings | 12,001 | 5,840 |
Accounts payable | 5,155 | 12,764 |
Dividend payable | 0 | 2,308 |
Operating lease liabilities | 7,878 | 0 |
Accrued liabilities | 10,832 | 14,306 |
Accrued income tax payable | 0 | 912 |
Total current liabilities | 35,866 | 36,130 |
Deferred income tax liabilities | 3,738 | 3,724 |
Long-term pension liability | 23,129 | 23,112 |
Operating lease liabilities | 17,015 | 0 |
Other long-term liabilities | 181 | 1,495 |
Total liabilities | 79,929 | 64,461 |
Common stock | 10,002 | 10,057 |
Capital in excess of par value | 65,141 | 64,263 |
Reinvested earnings | 151,853 | 152,835 |
Accumulated other comprehensive loss | (21,111) | (21,572) |
Total equity | 205,885 | 205,583 |
Total liabilities and equity | $ 285,814 | $ 270,044 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME | ||||
Net sales | $ 60,476 | $ 60,888 | $ 134,604 | $ 130,414 |
Cost of sales | 36,073 | 37,182 | 81,437 | 80,083 |
Gross earnings | 24,403 | 23,706 | 53,167 | 50,331 |
Selling and administrative expenses | 22,539 | 21,759 | 46,157 | 44,817 |
Earnings from operations | 1,864 | 1,947 | 7,010 | 5,514 |
Interest income | 230 | 254 | 453 | 487 |
Interest expense | (34) | 0 | (66) | 0 |
Other expense, net | (128) | (176) | (253) | (219) |
Earnings before provision for income taxes | 1,932 | 2,025 | 7,144 | 5,782 |
Provision for income taxes | 418 | 502 | 1,662 | 1,443 |
Net earnings | 1,514 | 1,523 | 5,482 | 4,339 |
Net loss attributable to noncontrolling interest | 0 | (103) | 0 | (274) |
Net earnings attributable to Weyco Group, Inc. | $ 1,514 | $ 1,626 | $ 5,482 | $ 4,613 |
Weighted average shares outstanding | ||||
Basic | 9,938 | 10,214 | 9,943 | 10,194 |
Diluted | 10,033 | 10,505 | 10,030 | 10,433 |
Earnings per share | ||||
Basic | $ 0.15 | $ 0.16 | $ 0.55 | $ 0.45 |
Diluted | 0.15 | 0.15 | 0.55 | 0.44 |
Cash dividends declared (per share) | $ 0.24 | $ 0.23 | $ 0.47 | $ 0.45 |
Comprehensive income | $ 1,737 | $ 650 | $ 5,943 | $ 3,465 |
Comprehensive loss attributable to noncontrolling interest | 0 | (383) | 0 | (588) |
Comprehensive income attributable to Weyco Group, Inc. | $ 1,737 | $ 1,033 | $ 5,943 | $ 4,053 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 5,482 | $ 4,339 |
Adjustments to reconcile net earnings to net cash provided by operating activities - | ||
Depreciation | 1,650 | 1,905 |
Amortization | 125 | 171 |
Bad debt expense | 79 | 160 |
Deferred income taxes | (61) | 841 |
Net foreign currency transaction losses | 18 | 105 |
Share-based compensation expense | 731 | 805 |
Pension contribution | 0 | (3,000) |
Pension expense | 523 | 426 |
Increase in cash surrender value of life insurance | (115) | (115) |
Changes in operating assets and liabilities - | ||
Accounts receivable | 12,142 | 11,464 |
Inventories | (10,065) | 3,714 |
Prepaid expenses and other assets | 2,095 | 2,527 |
Accounts payable | (7,612) | (3,008) |
Accrued liabilities and other | (3,194) | (5,213) |
Accrued income taxes | (1,558) | (1,111) |
Net cash provided by operating activities | 240 | 14,010 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities | (10,183) | (5,961) |
Proceeds from maturities of marketable securities | 1,645 | 3,375 |
Life insurance premiums paid | (155) | (155) |
Purchases of property, plant and equipment | (2,414) | (491) |
Net cash used for investing activities | (11,107) | (3,232) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash dividends paid | (6,978) | (6,836) |
Cash dividends paid to noncontrolling interest of subsidiary | 0 | (88) |
Shares purchased and retired | (1,828) | (6,589) |
Net proceeds from stock options exercised | 161 | 4,048 |
Taxes paid related to the net share settlement of equity awards | (5) | (611) |
Proceeds from bank borrowings | 75,474 | 0 |
Repayments of bank borrowings | (69,313) | 0 |
Net cash used for financing activities | (2,489) | (10,076) |
Effect of exchange rate changes on cash and cash equivalents | 64 | (157) |
Net (decrease) increase in cash and cash equivalents | (13,292) | 545 |
CASH AND CASH EQUIVALENTS at beginning of period | 22,973 | 23,453 |
CASH AND CASH EQUIVALENTS at end of period | 9,681 | 23,998 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid, net of refunds | 3,112 | 1,927 |
Interest paid | $ 66 | $ 0 |
Financial Statements
Financial Statements | 6 Months Ended |
Jun. 30, 2019 | |
Financial Statements | |
Financial Statements | 1. Financial Statements In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2019, may not necessarily be indicative of the results for the full year. |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncement | 6 Months Ended |
Jun. 30, 2019 | |
Recently Adopted Accounting Pronouncement | |
Recently Adopted Accounting Pronouncement | 2. Recently Adopted Accounting Pronouncement On January 1, 2019, the Company adopted Accounting Standards Update 2016‑02, Leases , as amended (hereinafter referred to as “ASC 842”), which supersedes the lease accounting guidance under Topic 840. ASC 842 generally requires lessees to recognize lease liabilities and corresponding right-of-use (“ROU”) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. The comparative information was not restated and continues to be reported in accordance with historical accounting under Topic 840. The Company elected to utilize certain practical expedients that were provided for transition relief. Accordingly, the Company did not reassess expired or existing contracts, lease classifications or related initial direct costs as part of its assessment process. Additionally, the Company elected not to apply the recognition requirements of ASC 842 to short-term leases. The adoption of ASC 842 had a material impact on the Company’s consolidated condensed balance sheet due to the recognition of ROU assets and lease liabilities. The Company recognized operating lease ROU assets and corresponding lease liabilities totaling $26.0 million and $27.8 million, respectively, on January 1, 2019. The operating lease ROU assets recorded on the adoption date were net of approximately $1.8 million in reclassifications of other accrued liabilities and long-term liabilities. The adoption did not impact the Company’s beginning retained earnings, nor did it have a material impact on the Company’s consolidated earnings or cash flows. |
Update to Significant Accountin
Update to Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Update to Significant Accounting Policies | |
Update to Significant Accounting Policies | 3. Update to Significant Accounting Policies The Company adopted ASC 842 in the first quarter of 2019. As a result, the Company updated its significant accounting policies for leases, as discussed below. Refer to Note 2 for the impact of the adoption on the Company’s consolidated condensed financial statements and Note 9 for additional information related to the Company’s lease arrangements. The Company leases retail shoe stores, primarily located in the U.S. and Australia, as well as several office and distribution facilities worldwide. The Company determines whether an arrangement is or contains a lease at contract inception. All of the Company’s leases are classified as operating leases, which are included in the operating lease ROU assets and operating lease liabilities in the consolidated condensed balance sheets (unaudited). The Company has no finance leases. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. Minimum lease payments include only the fixed lease component of the agreement, as well as any variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. As the Company’s leases generally do not provide an implicit rate, the Company used its incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate was a hypothetical rate based on an understanding of what the Company could borrow from a third-party lender, on a collateralized basis, over a similar term, and in an amount that approximates the value of the Company’s future lease payments. The Company used a portfolio approach and applied a single discount rate to all of its leases. Operating lease costs are recognized on a straight-line basis over the lease term and are included in selling and administrative expenses. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components, and short-term rentals (leases with terms less than 12 months) are expensed as incurred. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
Earnings Per Share | 4. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share amounts) Numerator: Net earnings attributable to Weyco Group, Inc. $ 1,514 $ 1,626 $ 5,482 $ 4,613 Denominator: Basic weighted average shares outstanding 9,938 10,214 9,943 10,194 Effect of dilutive securities: Employee share-based awards 95 291 87 239 Diluted weighted average shares outstanding 10,033 10,505 10,030 10,433 Basic earnings per share $ 0.15 $ 0.16 $ 0.55 $ 0.45 Diluted earnings per share $ 0.15 $ 0.15 $ 0.55 $ 0.44 Diluted weighted average shares outstanding for the three months ended June 30, 2019, excludes anti-dilutive stock options totaling approximately 346,000 shares of common stock at a weighted average price of $29.49. Diluted weighted average shares outstanding for the six months ended June 30, 2019, excludes anti-dilutive stock options totaling approximately 347,000 shares of common stock at a weighted average price of $29.50. There were no anti-dilutive stock options for the three months ended June 30, 2018. Diluted weighted average shares outstanding for the six months ended June 30, 2018, excludes anti-dilutive stock options totaling approximately 207,000 shares of common stock at a weighted average price of $27.94. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments | |
Investments | 5. Investments As noted in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018, all of the Company’s marketable securities are classified as held-to-maturity securities and reported at amortized cost pursuant to Accounting Standards Codification (“ASC”) 320, Investments – Debt and Equity Securities, as the Company has the intent and ability to hold all investments to maturity. Below is a summary of the amortized cost and estimated market values of the Company’s marketable securities as of June 30, 2019, and December 31, 2018. June 30, 2019 December 31, 2018 Amortized Market Amortized Market Cost Value Cost Value (Dollars in thousands) Municipal bonds: Current $ 10,820 $ 10,838 $ 1,525 $ 1,532 Due from one through five years 9,678 9,925 9,752 9,861 Due from six through ten years 5,032 5,397 6,239 6,433 Due from eleven through twenty years 3,256 3,422 2,711 2,713 Total $ 28,786 $ 29,582 $ 20,227 $ 20,539 The unrealized gains and losses on marketable securities at June 30, 2019, and at December 31, 2018, were as follows: June 30, 2019 December 31, 2018 Unrealized Unrealized Unrealized Unrealized Gains Losses Gains Losses (Dollars in thousands) Municipal bonds $ 796 $ – $ 388 $ (76) The estimated market values provided are level 2 valuations as defined by Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”). The Company reviewed its portfolio of investments as of June 30, 2019 and determined that no other-than-temporary market value impairment exists. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Intangible Assets | |
Intangible Assets | 6. Intangible Assets During the six months ended June 30, 2019, there were no changes in the carrying value of the Company’s indefinite-lived intangible assets (goodwill and trademarks). The Company’s amortizable intangible assets, which were included within other assets in the Consolidated Condensed Balance Sheets (unaudited), consisted of the following: June 30, 2019 December 31, 2018 Weighted Gross Gross Average Carrying Accumulated Carrying Accumulated Life (Years) Amount Amortization Net Amount Amortization Net (Dollars in thousands) (Dollars in thousands) Amortizable intangible assets Customer relationships 15 $ 3,500 $ (1,944) $ 1,556 $ 3,500 $ (1,828) $ 1,672 Total amortizable intangible assets $ 3,500 $ (1,944) $ 1,556 $ 3,500 $ (1,828) $ 1,672 Amortization expense related to the intangible assets was approximately $58,000 in both the second quarters of 2019 and 2018. For the six months ended June 30, amortization expense related to the intangible assets was approximately $116,000 in 2019 and $117,000 in 2018. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information | |
Segment Information | 7. Segment Information The Company has two reportable segments: North American wholesale operations (“wholesale”) and North American retail operations (“retail”). The chief operating decision maker, the Company’s Chief Executive Officer, evaluates the performance of the Company’s segments based on earnings from operations. Therefore, interest income or expense, other income or expense, and income taxes are not allocated to the segments. The “other” category in the tables below includes the Company’s wholesale and retail operations in Australia, South Africa, Asia Pacific and Europe, which do not meet the criteria for separate reportable segment classification. Summarized segment data for the three and six months ended June 30, 2019 and 2018, was as follows: Three Months Ended June 30, Wholesale Retail Other Total (Dollars in thousands) 2019 Product sales $ 45,416 $ 5,395 $ 9,029 $ 59,840 Licensing revenues 636 – – 636 Net sales $ 46,052 $ 5,395 $ 9,029 $ 60,476 Earnings (loss) from operations $ 2,212 $ 401 $ (749) $ 1,864 2018 Product sales $ 45,167 $ 4,624 $ 10,625 $ 60,416 Licensing revenues 472 – – 472 Net sales $ 45,639 $ 4,624 $ 10,625 $ 60,888 Earnings (loss) from operations $ 1,748 $ 222 $ (23) $ 1,947 Six Months Ended June 30, Wholesale Retail Other Total (Dollars in thousands) 2019 Product sales $ 104,190 $ 10,966 $ 18,105 $ 133,261 Licensing revenues 1,343 – – 1,343 Net sales $ 105,533 $ 10,966 $ 18,105 $ 134,604 Earnings (loss) from operations $ 7,418 $ 884 $ (1,292) $ 7,010 2018 Product sales $ 98,161 $ 9,551 $ 21,436 $ 129,148 Licensing revenues 1,266 – – 1,266 Net sales $ 99,427 $ 9,551 $ 21,436 $ 130,414 Earnings (loss) from operations $ 5,139 $ 428 $ (53) $ 5,514 |
Employee Retirement Plans
Employee Retirement Plans | 6 Months Ended |
Jun. 30, 2019 | |
Employee Retirement Plans | |
Employee Retirement Plans | 8. Employee Retirement Plans The components of the Company’s net periodic pension cost were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Service cost $ 128 $ 151 $ 231 $ 301 Interest cost 624 549 1,230 1,098 Expected return on plan assets (625) (646) (1,251) (1,292) Net amortization and deferral 167 159 313 319 Net periodic pension cost $ 294 $ 213 $ 523 $ 426 The components of net periodic pension cost other than the service cost component were included in "other expense, net" in the Consolidated Condensed Statements of Earnings and Comprehensive Income (Unaudited). |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Leases | 9. Leases The Company leases retail shoe stores, as well as several office and distribution facilities worldwide. The leases have original lease periods expiring between 2019 and 2033. Many leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of the Company’s operating lease costs were as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Operating lease costs $ 2,198 $ 4,392 Variable lease costs (1) 34 43 Total lease costs $ 2,232 $ 4,435 (1) Variable lease costs primarily include percentage rentals based upon sales in excess of specified amounts. Short-term lease costs, which were excluded from the above table, are not material to the Company’s financial statements. The following is a schedule of maturities of operating lease liabilities as of June 30, 2019 (dollars in thousands): Operating Leases 2019, excluding the six months ended June 30, 2019 $ 4,586 2020 8,085 2021 5,939 2022 3,411 2023 1,979 Thereafter 2,642 Total lease payments 26,642 Less imputed interest (1,749) Present value of lease liabilities 24,893 The operating lease liabilities are classified in the consolidated condensed balance sheet (unaudited) as follows (dollars in thousands): June 30, 2019 Operating lease liabilities – current $ 7,878 Operating lease liabilities - non-current 17,015 Total $ 24,893 The Company determined the present value of its lease liabilities using a weighted-average discount rate of 4.25%. As of June 30, 2019, the Company’s leases have a weighted-average remaining lease term of 5.85 years. The future minimum rental commitments under operating leases in effect as of December 31, 2018 having non-cancelable lease terms in excess of one year, as determined in accordance with Topic 840 (prior to the adoption of ASC 842), were as follows (dollars in thousands): Operating Leases 2019 $ 9,468 2020 7,529 2021 5,584 2022 3,278 2023 2,321 Thereafter 4,161 Total $ 32,341 Supplemental cash flow information related to the Company’s operating leases is as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 2,273 $ 4,525 Right-of-use assets obtained in exchange for new lease liabilities (noncash) $ 973 $ 27,002 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-Based Compensation Plans | |
Share-Based Compensation Plans | 10. Share-Based Compensation Plans During the three and six months ended June 30, 2019, the Company recognized approximately $365,000 and $731,000, respectively, of compensation expense associated with stock option and restricted stock awards granted in years 2015 through 2019. During the three and six months ended June 30, 2018, the Company recognized approximately $454,000 and $805,000, respectively, of compensation expense associated with stock option and restricted stock awards granted in years 2014 through 2017. The following table summarizes the Company’s stock option activity for the six-month period ended June 30, 2019: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (Years) Value* Outstanding at December 31, 2018 1,173,620 $ 27.96 Granted 2,500 $ 28.77 Exercised (18,795) $ 27.75 Forfeited or expired (2,750) $ 31.94 Outstanding at June 30, 2019 1,154,575 $ 27.95 $ 505,000 Exercisable at June 30, 2019 673,092 $ 26.89 $ 284,000 * The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company’s stock on June 28 2019, the last trading day of the quarter, of $26.71 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options. The following table summarizes the Company’s stock option exercise activity for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Total intrinsic value of stock options exercised $ 77 $ 2,549 $ 88 $ 3,050 Net proceeds from stock option exercises $ 154 $ 1,164 $ 161 $ 4,048 Income tax benefit from the exercise of stock options $ 20 $ 663 $ 23 $ 793 The following table summarizes the Company’s restricted stock award activity for the six-month period ended June 30, 2019: Weighted Weighted Average Shares of Average Remaining Aggregate Restricted Grant Date Contractual Intrinsic Stock Fair Value Term (Years) Value* Non-vested at December 31, 2018 61,480 $ 30.74 Issued 600 28.77 Vested – – Forfeited – – Non-vested at June 30, 2019 62,080 $ 30.72 $ 1,658,000 * The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company’s stock on June 28, 2019, the last trading day of the quarter, of $26.71 multiplied by the number of non-vested restricted shares outstanding. |
Short-Term Borrowings
Short-Term Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Short-Term Borrowings | |
Short-Term Borrowings | 11. Short-Term Borrowings At June 30, 2019, the Company had a $60 million unsecured revolving line of credit with a bank expiring November 5, 2019. The line of credit bears interest at the London Interbank Offered Rate (“LIBOR”) plus 0.75%. At June 30, 2019, outstanding borrowings were approximately $12.0 million at an interest rate of 3.15%. The highest balance on the line of credit during the six months ended June 30, 2019 was approximately $12.0 million. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments | |
Financial Instruments | 12. Financial Instruments At June 30, 2019, the Company had foreign exchange contracts outstanding to sell $5.0 million Canadian dollars at a price of approximately $3.8 million U.S. dollars. The Company’s wholly-owned subsidiary, Florsheim Australia, had foreign exchange contracts outstanding to buy $3.1 million U.S. dollars at a price of approximately $4.4 million Australian dollars . Based on quarter-end exchange rates, there were no significant unrealized gains or losses on the outstanding contracts. The Company determines the fair value of foreign exchange contracts based on the difference between the foreign currency contract rates and the widely available foreign currency rates as of the measurement date. The fair value measurements are based on observable market transactions, and thus represent a level 2 valuation as defined by ASC 820. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss) | |
Comprehensive Income (Loss) | 13. Comprehensive Income (Loss) Comprehensive income for the three and six months ended June 30, 2019 and 2018, was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Net earnings $ 1,514 $ 1,523 $ 5,482 $ 4,339 Foreign currency translation adjustments 100 (991) 230 (1,110) Pension liability, net of tax of $44, $42, $82, and $83, respectively 123 118 231 236 Total comprehensive income $ 1,737 $ 650 $ 5,943 $ 3,465 The components of accumulated other comprehensive loss as recorded on the Consolidated Condensed Balance Sheets (Unaudited) were as follows: June 30, December 31, 2019 2018 (Dollars in thousands) Foreign currency translation adjustments $ (6,671) $ (6,901) Pension liability, net of tax (14,440) (14,671) Total accumulated other comprehensive loss $ (21,111) $ (21,572) The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the six months ended June 30, 2019: Foreign Defined Currency Benefit Translation Pension Adjustments Items Total Beginning balance, December 31, 2018 $ (6,901) $ (14,671) $ (21,572) Other comprehensive income before reclassifications 230 – 230 Amounts reclassified from accumulated other comprehensive loss – 231 231 Net current period other comprehensive income 230 231 461 Ending balance, June 30, 2019 $ (6,671) $ (14,440) $ (21,111) The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the six months ended June 30, 2019: Amounts reclassified from accumulated other comprehensive loss for Affected line item in the the six months ended statement where net June 30, 2019 income is presented Amortization of defined benefit pension items Prior service cost $ (31) (1) Other expense, net Actuarial losses 344 (1) Other expense, net Total before tax 313 Tax benefit (82) Net of tax $ 231 (1) These amounts were included in net periodic pension cost. See Note 8 for additional details. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity | |
Equity | 14. Equity The following table reconciles the Company’s equity for the six months ended June 30, 2019: Accumulated Capital in Other Common Excess of Reinvested Comprehensive Stock Par Value Earnings Loss (Dollars in thousands) Balance, December 31, 2018 $ 10,057 $ 64,263 $ 152,835 $ (21,572) Net earnings – – 3,968 – Foreign currency translation adjustments – – – 130 Pension liability adjustment, net of tax – – – 108 Cash dividends declared – – (2,299) – Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price 1 6 – – Issuance of restricted stock 1 (1) – – Share-based compensation expense – 366 – – Shares purchased and retired (64) – (1,764) – Balance, March 31, 2019 $ 9,995 $ 64,634 $ 152,740 $ (21,334) Net earnings – – 1,514 – Foreign currency translation adjustments – – – 100 Pension liability adjustment, net of tax – – – 123 Cash dividends declared – – (2,401) – Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price 7 142 – – Share-based compensation expense – 365 – – Balance, June 30, 2019 $ 10,002 $ 65,141 $ 151,853 $ (21,111) The following table reconciles the Company’s equity for the six months ended June 30, 2018: Accumulated Capital in Other Common Excess of Reinvested Comprehensive Noncontrolling Stock Par Value Earnings Loss Interest (Dollars in thousands) Balance, December 31, 2017 $ 10,162 $ 55,884 $ 150,350 $ (17,859) $ 7,122 Net earnings – – 2,987 – (171) Foreign currency translation adjustments – – – (85) (34) Pension liability adjustment, net of tax – – – 118 – Cash dividends declared – – (2,257) – – Cash dividends paid to noncontrolling interest – – – – (88) Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price 108 2,776 – – – Restricted stock forfeited (2) 2 – – – Share-based compensation expense – 351 – – – Balance, March 31, 2018 $ 10,268 $ 59,013 $ 151,080 $ (17,826) $ 6,829 Net earnings – – 1,626 – (103) Foreign currency translation adjustments – – – (711) (280) Pension liability adjustment, net of tax – – – 118 – Cash dividends declared – – (2,395) – – Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price 89 463 – – – Issuance of restricted stock 2 (2) – – – Share-based compensation expense – 454 – – – Shares purchased and retired (199) – (6,390) – – Balance, June 30, 2018 $ 10,160 $ 59,928 $ 143,921 $ (18,419) $ 6,446 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
Schedule of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share amounts) Numerator: Net earnings attributable to Weyco Group, Inc. $ 1,514 $ 1,626 $ 5,482 $ 4,613 Denominator: Basic weighted average shares outstanding 9,938 10,214 9,943 10,194 Effect of dilutive securities: Employee share-based awards 95 291 87 239 Diluted weighted average shares outstanding 10,033 10,505 10,030 10,433 Basic earnings per share $ 0.15 $ 0.16 $ 0.55 $ 0.45 Diluted earnings per share $ 0.15 $ 0.15 $ 0.55 $ 0.44 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments | |
Schedule of Marketable securities | Below is a summary of the amortized cost and estimated market values of the Company’s marketable securities as of June 30, 2019, and December 31, 2018. June 30, 2019 December 31, 2018 Amortized Market Amortized Market Cost Value Cost Value (Dollars in thousands) Municipal bonds: Current $ 10,820 $ 10,838 $ 1,525 $ 1,532 Due from one through five years 9,678 9,925 9,752 9,861 Due from six through ten years 5,032 5,397 6,239 6,433 Due from eleven through twenty years 3,256 3,422 2,711 2,713 Total $ 28,786 $ 29,582 $ 20,227 $ 20,539 |
Schedule of Unrealized gains and losses | The unrealized gains and losses on marketable securities at June 30, 2019, and at December 31, 2018, were as follows: June 30, 2019 December 31, 2018 Unrealized Unrealized Unrealized Unrealized Gains Losses Gains Losses (Dollars in thousands) Municipal bonds $ 796 $ – $ 388 $ (76) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Intangible Assets | |
Schedule of Condensed Balance Sheet | The Company’s amortizable intangible assets, which were included within other assets in the Consolidated Condensed Balance Sheets (unaudited), consisted of the following: June 30, 2019 December 31, 2018 Weighted Gross Gross Average Carrying Accumulated Carrying Accumulated Life (Years) Amount Amortization Net Amount Amortization Net (Dollars in thousands) (Dollars in thousands) Amortizable intangible assets Customer relationships 15 $ 3,500 $ (1,944) $ 1,556 $ 3,500 $ (1,828) $ 1,672 Total amortizable intangible assets $ 3,500 $ (1,944) $ 1,556 $ 3,500 $ (1,828) $ 1,672 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information | |
Schedule of Segment Reporting Information | Summarized segment data for the three and six months ended June 30, 2019 and 2018, was as follows: Three Months Ended June 30, Wholesale Retail Other Total (Dollars in thousands) 2019 Product sales $ 45,416 $ 5,395 $ 9,029 $ 59,840 Licensing revenues 636 – – 636 Net sales $ 46,052 $ 5,395 $ 9,029 $ 60,476 Earnings (loss) from operations $ 2,212 $ 401 $ (749) $ 1,864 2018 Product sales $ 45,167 $ 4,624 $ 10,625 $ 60,416 Licensing revenues 472 – – 472 Net sales $ 45,639 $ 4,624 $ 10,625 $ 60,888 Earnings (loss) from operations $ 1,748 $ 222 $ (23) $ 1,947 Six Months Ended June 30, Wholesale Retail Other Total (Dollars in thousands) 2019 Product sales $ 104,190 $ 10,966 $ 18,105 $ 133,261 Licensing revenues 1,343 – – 1,343 Net sales $ 105,533 $ 10,966 $ 18,105 $ 134,604 Earnings (loss) from operations $ 7,418 $ 884 $ (1,292) $ 7,010 2018 Product sales $ 98,161 $ 9,551 $ 21,436 $ 129,148 Licensing revenues 1,266 – – 1,266 Net sales $ 99,427 $ 9,551 $ 21,436 $ 130,414 Earnings (loss) from operations $ 5,139 $ 428 $ (53) $ 5,514 |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Employee Retirement Plans | |
Schedule of Company's net periodic pension cost | The components of the Company’s net periodic pension cost were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Service cost $ 128 $ 151 $ 231 $ 301 Interest cost 624 549 1,230 1,098 Expected return on plan assets (625) (646) (1,251) (1,292) Net amortization and deferral 167 159 313 319 Net periodic pension cost $ 294 $ 213 $ 523 $ 426 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Schedule of operating lease costs | The components of the Company’s operating lease costs were as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Operating lease costs $ 2,198 $ 4,392 Variable lease costs (1) 34 43 Total lease costs $ 2,232 $ 4,435 (1) Variable lease costs primarily include percentage rentals based upon sales in excess of specified amounts. |
Schedule of maturities of operating lease liabilities | The following is a schedule of maturities of operating lease liabilities as of June 30, 2019 (dollars in thousands): Operating Leases 2019, excluding the six months ended June 30, 2019 $ 4,586 2020 8,085 2021 5,939 2022 3,411 2023 1,979 Thereafter 2,642 Total lease payments 26,642 Less imputed interest (1,749) Present value of lease liabilities 24,893 |
Schedule of classification of operating lease liabilities | The operating lease liabilities are classified in the consolidated condensed balance sheet (unaudited) as follows (dollars in thousands): June 30, 2019 Operating lease liabilities – current $ 7,878 Operating lease liabilities - non-current 17,015 Total $ 24,893 |
Schedule of future minimum rental commitments | The future minimum rental commitments under operating leases in effect as of December 31, 2018 having non-cancelable lease terms in excess of one year, as determined in accordance with Topic 840 (prior to the adoption of ASC 842), were as follows (dollars in thousands): Operating Leases 2019 $ 9,468 2020 7,529 2021 5,584 2022 3,278 2023 2,321 Thereafter 4,161 Total $ 32,341 |
Schedule of supplemental cash flow information | Supplemental cash flow information related to the Company’s operating leases is as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 2,273 $ 4,525 Right-of-use assets obtained in exchange for new lease liabilities (noncash) $ 973 $ 27,002 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-Based Compensation Plans | |
Schedule of Company's stock option activity | The following table summarizes the Company’s stock option activity for the six-month period ended June 30, 2019: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (Years) Value* Outstanding at December 31, 2018 1,173,620 $ 27.96 Granted 2,500 $ 28.77 Exercised (18,795) $ 27.75 Forfeited or expired (2,750) $ 31.94 Outstanding at June 30, 2019 1,154,575 $ 27.95 $ 505,000 Exercisable at June 30, 2019 673,092 $ 26.89 $ 284,000 * The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company’s stock on June 28 2019, the last trading day of the quarter, of $26.71 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options. |
Schedule of Company's stock option exercise activity | The following table summarizes the Company’s stock option exercise activity for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Total intrinsic value of stock options exercised $ 77 $ 2,549 $ 88 $ 3,050 Net proceeds from stock option exercises $ 154 $ 1,164 $ 161 $ 4,048 Income tax benefit from the exercise of stock options $ 20 $ 663 $ 23 $ 793 |
Schedule of Company's restricted stock award | The following table summarizes the Company’s restricted stock award activity for the six-month period ended June 30, 2019: Weighted Weighted Average Shares of Average Remaining Aggregate Restricted Grant Date Contractual Intrinsic Stock Fair Value Term (Years) Value* Non-vested at December 31, 2018 61,480 $ 30.74 Issued 600 28.77 Vested – – Forfeited – – Non-vested at June 30, 2019 62,080 $ 30.72 $ 1,658,000 * The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company’s stock on June 28, 2019, the last trading day of the quarter, of $26.71 multiplied by the number of non-vested restricted shares outstanding. |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss) | |
Schedule of comprehensive income (Loss) | Comprehensive income for the three and six months ended June 30, 2019 and 2018, was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Net earnings $ 1,514 $ 1,523 $ 5,482 $ 4,339 Foreign currency translation adjustments 100 (991) 230 (1,110) Pension liability, net of tax of $44, $42, $82, and $83, respectively 123 118 231 236 Total comprehensive income $ 1,737 $ 650 $ 5,943 $ 3,465 |
Schedule of accumulated other comprehensive loss | The components of accumulated other comprehensive loss as recorded on the Consolidated Condensed Balance Sheets (Unaudited) were as follows: June 30, December 31, 2019 2018 (Dollars in thousands) Foreign currency translation adjustments $ (6,671) $ (6,901) Pension liability, net of tax (14,440) (14,671) Total accumulated other comprehensive loss $ (21,111) $ (21,572) |
Schedule of changes in accumulated other comprehensive loss | The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the six months ended June 30, 2019: Foreign Defined Currency Benefit Translation Pension Adjustments Items Total Beginning balance, December 31, 2018 $ (6,901) $ (14,671) $ (21,572) Other comprehensive income before reclassifications 230 – 230 Amounts reclassified from accumulated other comprehensive loss – 231 231 Net current period other comprehensive income 230 231 461 Ending balance, June 30, 2019 $ (6,671) $ (14,440) $ (21,111) |
Schedule of reclassification adjustments out of accumulated other comprehensive loss | The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the six months ended June 30, 2019: Amounts reclassified from accumulated other comprehensive loss for Affected line item in the the six months ended statement where net June 30, 2019 income is presented Amortization of defined benefit pension items Prior service cost $ (31) (1) Other expense, net Actuarial losses 344 (1) Other expense, net Total before tax 313 Tax benefit (82) Net of tax $ 231 (1) These amounts were included in net periodic pension cost. See Note 8 for additional details. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity | |
Schedule of reconciliation of company's equity | The following table reconciles the Company’s equity for the six months ended June 30, 2019: Accumulated Capital in Other Common Excess of Reinvested Comprehensive Stock Par Value Earnings Loss (Dollars in thousands) Balance, December 31, 2018 $ 10,057 $ 64,263 $ 152,835 $ (21,572) Net earnings – – 3,968 – Foreign currency translation adjustments – – – 130 Pension liability adjustment, net of tax – – – 108 Cash dividends declared – – (2,299) – Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price 1 6 – – Issuance of restricted stock 1 (1) – – Share-based compensation expense – 366 – – Shares purchased and retired (64) – (1,764) – Balance, March 31, 2019 $ 9,995 $ 64,634 $ 152,740 $ (21,334) Net earnings – – 1,514 – Foreign currency translation adjustments – – – 100 Pension liability adjustment, net of tax – – – 123 Cash dividends declared – – (2,401) – Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price 7 142 – – Share-based compensation expense – 365 – – Balance, June 30, 2019 $ 10,002 $ 65,141 $ 151,853 $ (21,111) The following table reconciles the Company’s equity for the six months ended June 30, 2018: Accumulated Capital in Other Common Excess of Reinvested Comprehensive Noncontrolling Stock Par Value Earnings Loss Interest (Dollars in thousands) Balance, December 31, 2017 $ 10,162 $ 55,884 $ 150,350 $ (17,859) $ 7,122 Net earnings – – 2,987 – (171) Foreign currency translation adjustments – – – (85) (34) Pension liability adjustment, net of tax – – – 118 – Cash dividends declared – – (2,257) – – Cash dividends paid to noncontrolling interest – – – – (88) Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price 108 2,776 – – – Restricted stock forfeited (2) 2 – – – Share-based compensation expense – 351 – – – Balance, March 31, 2018 $ 10,268 $ 59,013 $ 151,080 $ (17,826) $ 6,829 Net earnings – – 1,626 – (103) Foreign currency translation adjustments – – – (711) (280) Pension liability adjustment, net of tax – – – 118 – Cash dividends declared – – (2,395) – – Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price 89 463 – – – Issuance of restricted stock 2 (2) – – – Share-based compensation expense – 454 – – – Shares purchased and retired (199) – (6,390) – – Balance, June 30, 2018 $ 10,160 $ 59,928 $ 143,921 $ (18,419) $ 6,446 |
Recently Adopted Accounting P_2
Recently Adopted Accounting Pronouncement- Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Recently Adopted Accounting Pronouncement | |||
Operating Lease, Right-of-Use Asset | $ 23,280 | $ 26,000 | $ 0 |
Operating Lease, Liability | $ 24,893 | 27,800 | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 1,800 |
Earnings Per Share - Earning pe
Earnings Per Share - Earning per share basic and diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net earnings attributable to Weyco Group, Inc. | $ 1,514 | $ 1,626 | $ 5,482 | $ 4,613 |
Denominator: | ||||
Basic weighted average shares outstanding (in shares) | 9,938 | 10,214 | 9,943 | 10,194 |
Effect of dilutive securities: | ||||
Employee stock-based awards (in shares) | 95 | 291 | 87 | 239 |
Diluted weighted average shares outstanding (in shares) | 10,033 | 10,505 | 10,030 | 10,433 |
Basic earnings per share (in dollars per share) | $ 0.15 | $ 0.16 | $ 0.55 | $ 0.45 |
Diluted earnings per share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.55 | $ 0.44 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 346,000 | 347,000 | 207,000 |
Weighted Average Price of Antidilutive Securities Excluded from Computation of Earnings Per Share (in dollars per share) | $ 29.49 | $ 29.50 | $ 27.94 |
Investments - Marketable securi
Investments - Marketable securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost, Current | $ 10,820 | $ 1,525 |
Municipal Bonds [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost, Current | 10,820 | 1,525 |
Amortized Cost, Due from one through five years | 9,678 | 9,752 |
Amortized Cost, Due from six through ten years | 5,032 | 6,239 |
Amortized Cost, Due from eleven through twenty years | 3,256 | 2,711 |
Amortized Cost, Total | 28,786 | 20,227 |
Market Value, Current | 10,838 | 1,532 |
Market Value, Due from one through five years | 9,925 | 9,861 |
Market Value, Due from six through ten years | 5,397 | 6,433 |
Market Value, Due from eleven through twenty years | 3,422 | 2,713 |
Market Value, Total | $ 29,582 | $ 20,539 |
Investments - Unrealized gains
Investments - Unrealized gains and losses (Details) - Municipal Bonds [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Net Investment Income [Line Items] | ||
Unrealized Gains | $ 796 | $ 388 |
Unrealized Losses | $ 0 | $ (76) |
Intangible Assets - Consolidate
Intangible Assets - Consolidated balance sheet (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Amortizable intangible assets: | ||
Gross Carrying Amount | $ 3,500 | $ 3,500 |
Accumulated Amortization | (1,944) | (1,828) |
Net | $ 1,556 | 1,672 |
Customer Relationships [Member] | ||
Amortizable intangible assets: | ||
Weighted Average Life (Years) | 15 years | |
Gross Carrying Amount | $ 3,500 | 3,500 |
Accumulated Amortization | (1,944) | (1,828) |
Net | $ 1,556 | $ 1,672 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Intangible Assets | ||||
Amortization of Intangible Assets | $ 58,000 | $ 58,000 | $ 116,000 | $ 117,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 60,476 | $ 60,888 | $ 134,604 | $ 130,414 |
Earnings (loss) from operations | 1,864 | 1,947 | 7,010 | 5,514 |
Product sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 59,840 | 60,416 | 133,261 | 129,148 |
Licensing revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 636 | 472 | 1,343 | 1,266 |
Wholesale [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 46,052 | 45,639 | 105,533 | 99,427 |
Earnings (loss) from operations | 2,212 | 1,748 | 7,418 | 5,139 |
Wholesale [Member] | Product sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 45,416 | 45,167 | 104,190 | 98,161 |
Wholesale [Member] | Licensing revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 636 | 472 | 1,343 | 1,266 |
Retail Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,395 | 4,624 | 10,966 | 9,551 |
Earnings (loss) from operations | 401 | 222 | 884 | 428 |
Retail Segment [Member] | Product sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,395 | 4,624 | 10,966 | 9,551 |
Retail Segment [Member] | Licensing revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 9,029 | 10,625 | 18,105 | 21,436 |
Earnings (loss) from operations | (749) | (23) | (1,292) | (53) |
Other Segment [Member] | Product sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 9,029 | 10,625 | 18,105 | 21,436 |
Other Segment [Member] | Licensing revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Employee Retirement Plans (Deta
Employee Retirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Retirement Plans | ||||
Service cost | $ 128 | $ 151 | $ 231 | $ 301 |
Interest cost | 624 | 549 | 1,230 | 1,098 |
Expected return on plan assets | (625) | (646) | (1,251) | (1,292) |
Net amortization and deferral | 167 | 159 | 313 | 319 |
Net periodic pension cost | $ 294 | $ 213 | $ 523 | $ 426 |
Leases - Operating lease costs
Leases - Operating lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases | ||
Operating lease costs | $ 2,198 | $ 4,392 |
Variable lease costs | 34 | 43 |
Total lease costs | $ 2,232 | $ 4,435 |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Leases | ||
2019, excluding the quarter ended March 31, 2019 | $ 4,586 | |
2020 | 8,085 | |
2021 | 5,939 | |
2022 | 3,411 | |
2023 | 1,979 | |
Thereafter | 2,642 | |
Total lease payments | 26,642 | |
Less imputed interest | (1,749) | |
Present value of lease liabilities | $ 24,893 | $ 27,800 |
Leases - Operating lease liabil
Leases - Operating lease liabilities classification (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases | |||
Operating lease liabilities - current | $ 7,878 | $ 0 | |
Operating lease liabilities - non-current | 17,015 | $ 0 | |
Total | $ 24,893 | $ 27,800 |
Leases - Future minimum rental
Leases - Future minimum rental commitments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases | |
2019 | $ 9,468 |
2020 | 7,529 |
2021 | 5,584 |
2022 | 3,278 |
2023 | 2,321 |
Thereafter | 4,161 |
Total | $ 32,341 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 2,273 | $ 4,525 |
Right-of-use assets obtained in exchange for new lease liabilities (noncash) | $ 973 | $ 27,002 |
Leases - Additional information
Leases - Additional information (Details) | Jun. 30, 2019 |
Leases | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.25% |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 10 months 6 days |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Company's stock option activity (Details) - Employee Stock Option [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at beginning of year | shares | 1,173,620 |
Shares, Granted | shares | 2,500 |
Shares, Exercised | shares | (18,795) |
Shares, Forfeited or expired | shares | (2,750) |
Shares, Outstanding at end of year | shares | 1,154,575 |
Shares, Exercisable at end of year | shares | 673,092 |
Weighted Average Exercise Price, Outstanding at beginning of year (in dollars per share) | $ / shares | $ 27.96 |
Weighted Average Exercise Price, Granted (in dollars per share) | $ / shares | 28.77 |
Weighted Average Exercise Price, Exercised (in dollars per share) | $ / shares | 27.75 |
Weighted Average Exercise Price, Forfeited or expired (in dollars per share) | $ / shares | 31.94 |
Weighted Average Exercise Price, Outstanding at end of year (in dollars per share) | $ / shares | 27.95 |
Weighted Average Exercise Price, Exercisable at end of year (in dollars per share) | $ / shares | $ 26.89 |
Weighted Average Remaining Contractual Life (Years), Outstanding - December 31, 2018 | 3 years 8 months 12 days |
Weighted Average Remaining Contractual Life (Years), Exercisable - December 31, 2018 | 1 year 10 months 24 days |
Aggregate Intrinsic Value, Outstanding at December 31, 2018 | $ | $ 505,000 |
Aggregate Intrinsic Value, Exercisable at December 31, 2018 | $ | $ 284,000 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Company's stock option exercise activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-Based Compensation Plans | ||||
Total intrinsic value of stock options exercised | $ 77 | $ 2,549 | $ 88 | $ 3,050 |
Net proceeds from stock option exercises | 154 | 1,164 | 161 | 4,048 |
Income tax benefit from the exercise of stock options | $ 20 | $ 663 | $ 23 | $ 793 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Company's restricted stock award activity (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of Restricted Stock, Non-vested beginning of year | shares | 61,480 |
Shares of Restricted Stock, Issued | shares | 600 |
Shares of Restricted Stock, Vested | shares | 0 |
Shares of Restricted Stock, Forfeited | shares | 0 |
Shares of Restricted Stock, Non-vested end of year | shares | 62,080 |
Weighted Average Grant Date Fair Value, Non-vested beginning of year (in dollars per share) | $ / shares | $ 30.74 |
Weighted Average Grant Date Fair Value, Issued (in dollars per share) | $ / shares | 28.77 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Non-vested end of year (in dollars per share) | $ / shares | $ 30.72 |
Weighted Average Remaining Contractual Term (Years) | 2 years 2 months 12 days |
Aggregate Intrinsic Value | $ | $ 1,658,000 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 365,000 | $ 454,000 | $ 731,000 | $ 805,000 | |
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Price | $ 26.71 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value, Amount Per Share | $ 26.71 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 12 |
London Interbank Offered Rate (LIBOR) [Member] | |
Short-term Debt [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Revolving Credit Facility [Member] | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Amount, Total | $ 60 |
Line of Credit, Current | $ 12 |
Line of Credit Facility, Interest Rate During Period | 3.15% |
Financial Instruments (Details)
Financial Instruments (Details) - Jun. 30, 2019 $ in Millions, $ in Millions, $ in Millions | CAD ($) | AUD ($) | USD ($) |
Foreign Exchange Contracts, Canadian [Member] | |||
Investment Owned, Foreign Currency Contract, Current Value | $ 5 | $ 3.8 | |
Foreign Exchange Contracts Australian [Member] | |||
Investment Owned, Foreign Currency Contract, Current Value | $ 4.4 | $ 3.1 |
Comprehensive Income (Loss) - C
Comprehensive Income (Loss) - Comprehensive income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Comprehensive Income (Loss) | ||||
Net earnings | $ 1,514 | $ 1,523 | $ 5,482 | $ 4,339 |
Foreign currency translation adjustments | 100 | (991) | 230 | (1,110) |
Pension liability, net of tax of $44, $42, $82, and $83, respectively | 123 | 118 | 231 | 236 |
Total comprehensive income | $ 1,737 | $ 650 | $ 5,943 | $ 3,465 |
Comprehensive Income (Loss) - A
Comprehensive Income (Loss) - Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Comprehensive Income (Loss) | ||
Foreign currency translation adjustments | $ (6,671) | $ (6,901) |
Pension liability, net of tax | (14,440) | (14,671) |
Total accumulated other comprehensive loss | $ (21,111) | $ (21,572) |
Comprehensive Income (Loss) -_2
Comprehensive Income (Loss) - Changes in accumulated comprehensive loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Comprehensive Income (Loss) | ||||
Foreign Currency Translation Adjustments, Beginning balance | $ (6,901) | |||
Foreign Currency Translation Adjustments, Other comprehensive (loss) income before reclassifications | 230 | |||
Foreign Currency Translation Adjustments, Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Foreign Currency Translation Adjustments, Net current period other comprehensive loss (income) | 230 | |||
Foreign Currency Translation Adjustments, Ending balance | $ (6,671) | (6,671) | ||
Defined Benefit Pension Items, Beginning balance | (14,671) | |||
Defined Benefit Pension Items, Other comprehensive loss before reclassifications | 0 | |||
Defined Benefit Pension Items, Amounts reclassified from accumulated other comprehensive loss | 123 | $ 118 | 231 | $ 236 |
Defined Benefit Pension Items, Net current period other comprehensive loss (income) | 231 | |||
Defined Benefit Pension Items, Ending balance | (14,440) | (14,440) | ||
Beginning balance | (21,572) | |||
Other comprehensive (loss) income before reclassifications | 230 | |||
Amounts reclassified from accumulated other comprehensive loss | 231 | |||
Net current period other comprehensive loss (income) | 461 | |||
Ending balance | $ (21,111) | $ (21,111) |
Comprehensive Income (Loss) - R
Comprehensive Income (Loss) - Reclassification adjustments out of accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amortization of defined benefit pension items | ||||
Prior service cost | $ (31) | |||
Actuarial losses | 344 | |||
Total before tax | 313 | |||
Tax benefit | (82) | |||
Net of tax | $ 123 | $ 118 | $ 231 | $ 236 |
Comprehensive Income (Loss) -_3
Comprehensive Income (Loss) - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Comprehensive Income (Loss) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 44 | $ 42 | $ 82 | $ 83 |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Balance | $ 205,583 | $ 205,583 | ||||
Net earnings | $ 1,514 | $ 1,523 | 5,482 | $ 4,339 | ||
Foreign currency translation adjustments | 100 | (991) | 230 | (1,110) | ||
Pension liability adjustment, net of tax | (231) | |||||
Balance | 205,885 | 205,885 | ||||
Common Stock [Member] | ||||||
Balance | 9,995 | 10,057 | 10,268 | $ 10,162 | 10,057 | 10,162 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | 7 | 1 | 89 | 108 | ||
Restricted stock forfeited | (2) | |||||
Issuance of restricted stock | 1 | 2 | ||||
Shares purchased and retired | (64) | (199) | ||||
Balance | 10,002 | 9,995 | 10,160 | 10,268 | 10,002 | 10,160 |
Capital in Excess Of Par Value [Member] | ||||||
Balance | 64,634 | 64,263 | 59,013 | 55,884 | 64,263 | 55,884 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | 142 | 6 | 463 | 2,776 | ||
Restricted stock forfeited | 2 | |||||
Issuance of restricted stock | (1) | (2) | ||||
Share-based compensation expense | 365 | 366 | 454 | 351 | ||
Balance | 65,141 | 64,634 | 59,928 | 59,013 | 65,141 | 59,928 |
Reinvested Earnings [Member] | ||||||
Balance | 152,740 | 152,835 | 151,080 | 150,350 | 152,835 | 150,350 |
Net earnings | 1,514 | 3,968 | 1,626 | 2,987 | ||
Cash dividends declared | (2,401) | (2,299) | (2,395) | (2,257) | ||
Shares purchased and retired | (1,764) | (6,390) | ||||
Balance | 151,853 | 152,740 | 143,921 | 151,080 | 151,853 | 143,921 |
Accumulated Other Comprehensive Loss [Member] | ||||||
Balance | (21,334) | (21,572) | (17,826) | (17,859) | (21,572) | (17,859) |
Foreign currency translation adjustments | 100 | 130 | (711) | (85) | ||
Pension liability adjustment, net of tax | 123 | 108 | 118 | 118 | ||
Balance | $ (21,111) | $ (21,334) | (18,419) | (17,826) | $ (21,111) | (18,419) |
Noncontrolling Interest [Member] | ||||||
Balance | 6,829 | 7,122 | 7,122 | |||
Net earnings | (103) | (171) | ||||
Foreign currency translation adjustments | (280) | (34) | ||||
Cash dividends paid to noncontrolling interest | (88) | |||||
Balance | $ 6,446 | $ 6,829 | $ 6,446 |