Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 10, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SYSTEMAX INC | ||
Entity Central Index Key | 945,114 | ||
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 | $ 93,208,121 | ||
Entity Common Stock, Shares Outstanding | 36,877,688 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 215.1 | $ 165 |
Accounts receivable, net of allowances of $15.7 and $15.8 | 266.3 | 354.5 |
Inventories | 144.4 | 292.9 |
Prepaid expenses and other current assets | 14.5 | 15.9 |
Total current assets | 640.3 | 828.3 |
Property, plant and equipment, net | 38.3 | 41.2 |
Deferred income taxes | 8.6 | 15.2 |
Goodwill and intangibles | 18.8 | 7.4 |
Other assets | 4.1 | 4.8 |
Total assets | 710.1 | 896.9 |
Current liabilities: | ||
Accounts payable | 346.5 | 419.5 |
Accrued expenses and other current liabilities | 79 | 95.4 |
Current portion of long term debt | 0.6 | 2.8 |
Total current liabilities | 426.1 | 517.7 |
Long-term debt | 0.4 | 1.1 |
Deferred income tax liability | 0.4 | 0 |
Other liabilities | 29.3 | 18.5 |
Total liabilities | $ 456.2 | $ 537.3 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, par value $.01 per share, authorized 25 million shares; issued none | ||
Common stock, par value $.01 per share, authorized 150 million shares; issued 38,861,992 and 38,861,992 shares; outstanding 36,872,688 and 36,808,158 shares | $ 0.4 | $ 0.4 |
Additional paid-in capital | 184.4 | 184.3 |
Treasury stock at cost - 1,989,304 and 2,053,834 shares | (24.5) | (25.4) |
Retained earnings | 109.4 | 209.2 |
Accumulated other comprehensive loss | (15.8) | (8.9) |
Total shareholders' equity | 253.9 | 359.6 |
Total liabilities and shareholders' equity | $ 710.1 | $ 896.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Accounts receivable, allowances | $ 15.7 | $ 15.8 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 38,861,992 | 38,861,992 |
Common stock, shares outstanding (in shares) | 36,872,688 | 36,808,158 |
Treasury stock (in shares) | 1,989,304 | 2,053,834 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Net sales | $ 1,854.7 | $ 2,104.2 | $ 1,975.4 |
Cost of sales | 1,512 | 1,727 | 1,614.7 |
Gross profit | 342.7 | 377.2 | 360.7 |
Selling, general and administrative expenses | 338.9 | 375 | 355.3 |
Special charges, net | 27.9 | 15.9 | 16.2 |
Operating loss from continuing operations | (24.1) | (13.7) | (10.8) |
Foreign currency exchange loss | 9.8 | 5.3 | 0.5 |
Interest and other income, net | 0.9 | 1.1 | 1.1 |
Loss from continuing operations before income taxes | (34.8) | (20.1) | (12.4) |
Provision for income taxes | 13.5 | 11.9 | 30.6 |
Net Loss from continuing operations | (48.3) | (32) | (43) |
Loss from discontinued operations, net of tax | (51.5) | (5.5) | (0.8) |
Net loss | $ (99.8) | $ (37.5) | $ (43.8) |
Basic and diluted EPS: | |||
Net loss per share from continuing operations (in dollars per share) | $ (1.30) | $ (0.86) | $ (1.16) |
Net loss per share from discontinued operations (in dollars per share) | (1.39) | (0.15) | (0.02) |
Net loss per share, basic and diluted (in dollars per share) | $ (2.69) | $ (1.01) | $ (1.18) |
Weighted average common and common equivalent shares: | |||
Basic and diluted (in shares) | 37.1 | 37.1 | 37 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Net loss | $ (99.8) | $ (37.5) | $ (43.8) |
Other comprehensive loss: | |||
Foreign currency translation gain (loss) | (6.9) | (11.1) | 1.2 |
Total comprehensive loss | $ (106.7) | $ (48.6) | $ (42.6) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Loss from continuing operations | $ (48.3) | $ (32) | $ (43) |
Adjustments to reconcile loss from continuing operations to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 9.3 | 11.5 | 13.1 |
Asset impairment | 1.4 | 10.2 | 4.1 |
Provision for deferred income taxes | 5.5 | 0.7 | 27.1 |
Provision for returns and doubtful accounts | 7.9 | 8.9 | 4 |
Compensation expense related to equity compensation plans | 1.2 | 1.5 | 2.9 |
Excess tax benefit from exercises of stock options | 0 | 0 | (0.1) |
(Gain) loss on dispositions and abandonment | (0.1) | 0.1 | 0.1 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 70.7 | (54) | (23.4) |
Inventories | 153.5 | 23.9 | 46.1 |
Prepaid expenses and other current assets | 2.7 | (1) | (1.4) |
Income taxes payable (receivable) | (0.3) | 14.4 | (8.7) |
Accounts payable | (62.7) | 10.1 | 12.2 |
Accrued expenses and other current liabilities | (5.2) | 6.5 | 9.1 |
Net cash provided by operating activities from continuing operations | 135.6 | 0.8 | 42.1 |
Net cash provided by (used in) operating activities from discontinued operations | (49.1) | (0.9) | 4.7 |
Net cash provided by (used in) operating activities | 86.5 | (0.1) | 46.8 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (11.3) | (7.1) | (13.7) |
Proceeds from disposals of property, plant and equipment | 1.4 | 1 | 0.3 |
Acquisitions net of cash acquired | (24.8) | (6.4) | 0 |
Net cash used in investing activities | (34.7) | (12.5) | (13.4) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of capital lease obligations | (2.8) | (2.6) | (2.8) |
Proceeds from issuance of common stock | 0 | 0.3 | 0.1 |
Repurchase of treasury stock | (0.2) | 0 | 0 |
Excess tax benefit from exercises of stock options | 0 | 0 | 0.1 |
Net cash used in financing activities | (3) | (2.3) | (2.6) |
EFFECTS OF EXCHANGE RATES ON CASH | 1.3 | (1.5) | (0.1) |
NET INCREASE (DECREASE) IN CASH | 50.1 | (16.4) | 30.7 |
CASH - BEGINNING OF YEAR | 165 | 181.4 | 150.7 |
CASH - END OF YEAR | 215.1 | 165 | 181.4 |
Supplemental disclosures: | |||
Interest paid | 0.7 | 1.1 | 1.2 |
Income taxes paid | 4.1 | 5.2 | 8.1 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Acquisitions of equipment through capital leases | $ 0 | $ 0.8 | $ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY - USD ($) shares in Thousands, $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, At Cost [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balances at Dec. 31, 2012 | $ 0.4 | $ 183 | $ (28.6) | $ 290.5 | $ 1 | $ 446.3 |
Balances (in shares) at Dec. 31, 2012 | 36,555 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 2.9 | 2.9 | ||||
Issuance of restricted stock | (1.9) | 1.8 | (0.1) | |||
Issuance of restricted stock (in shares) | 140 | |||||
Exercise of stock options | (0.3) | 0.4 | 0.1 | |||
Exercise of stock options (in shares) | 34 | |||||
Surrender of fully vested options and restricted stock | (0.4) | (0.4) | ||||
Change in cumulative translation adjustment | 1.2 | 1.2 | ||||
Net loss | (43.8) | (43.8) | ||||
Balances at Dec. 31, 2013 | $ 0.4 | 183.3 | (26.4) | 246.7 | 2.2 | 406.2 |
Balances (in shares) at Dec. 31, 2013 | 36,729 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 1.5 | 1.5 | ||||
Issuance of restricted stock | (0.3) | 0.6 | 0.3 | |||
Issuance of restricted stock (in shares) | 45 | |||||
Exercise of stock options | (0.1) | 0.4 | 0.3 | |||
Exercise of stock options (in shares) | 34 | |||||
Surrender of fully vested options and restricted stock | (0.1) | (0.1) | ||||
Change in cumulative translation adjustment | (11.1) | (11.1) | ||||
Net loss | (37.5) | (37.5) | ||||
Balances at Dec. 31, 2014 | $ 0.4 | 184.3 | (25.4) | 209.2 | (8.9) | 359.6 |
Balances (in shares) at Dec. 31, 2014 | 36,808 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 1.2 | 1.2 | ||||
Issuance of restricted stock | (1.1) | 1.1 | 0 | |||
Issuance of restricted stock (in shares) | 86 | |||||
Exercise of stock options | 0 | 0 | 0 | |||
Exercise of stock options (in shares) | 4 | |||||
Repurchase of treasury stock | (0.2) | (0.2) | ||||
Repurchase of treasury stock (in shares) | (25) | |||||
Change in cumulative translation adjustment | (6.9) | (6.9) | ||||
Net loss | (99.8) | (99.8) | ||||
Balances at Dec. 31, 2015 | $ 0.4 | $ 184.4 | $ (24.5) | $ 109.4 | $ (15.8) | $ 253.9 |
Balances (in shares) at Dec. 31, 2015 | 36,873 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Systemax Inc. is primarily a direct marketer of brand name and private label products. During 2015, the Company’s operations were organized in three reportable business segments — Industrial Products Group (“IPG”), EMEA Technology Products Group (“EMEA”) and what was the largest business in terms of revenue, North America Technology Products Group (“NATG”). EMEA and NATG were aggregated in prior years. Smaller business operations and corporate functions are aggregated and reported as an additional segment – Corporate and Other (“Corporate”). On December 1, 2015, the Company sold the business operations and certain assets and liabilities of the NATG business to PCM, Inc. (“PCM”) for approximately $14 million (See Note 2). As a result, the operations of NATG are now reported both within continuing operations and as discontinued operations in this Form 10-K. The Company follows the guidance under Accounting Standards Update (“ASU”) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, As part of the March 31, 2015 announcement of restructuring the business the Company closed 31 retail stores and a warehouse during the second quarter of fiscal 2015. The Company assessed the disposal group under ASU 2014-08 and concluded the closure of the disposal group to be a "strategic shift". However, this strategic shift was not determined to be a "major" strategic shift based on the portion of the consolidated business that the disposal group represented. Accordingly this disposal group, which includes all the operations that were ceased prior to the December 2015 sale to PCM is not presented in the accompanying financial statements as discontinued operations and remains in continuing operations for the twelve months ended December 31, 2015 and prior periods. Pretax losses for this disposal group were $39.0 million, $17.9 million and $26.8 million for the year ended December 31, 2015, 2014 and 2013, respectively. Principles of Consolidation Reclassifications Fiscal Year Use of Estimates In Financial Statements Changes in estimates are made when circumstances warrant. Such changes in estimates and refinements in estimation methodologies are reflected in reported results of operations; if material, the effects of changes in estimates are disclosed in the notes to the consolidated financial statements. Significant estimates and assumptions by management affect the allowance for doubtful accounts, sales return returns and allowances, inventory reserves, allowances for cooperative advertising, vendor drop shipments, the carrying value of long‑lived assets (including goodwill and intangible assets), the carrying value, capitalization and amortization of software development costs, the provision for income taxes and related deferred tax accounts, certain accrued liabilities, revenue recognition, contingencies, sub-rental lease income, litigation and related legal accruals and the value attributed to employee stock options and other stock‑based awards. Foreign Currency Translation Cash Inventories Property, Plant and Equipment Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of operations in the period realized. Internal-Use Software Evaluation of Long-lived Assets Business Combinations Goodwill and Intangible Assets Income Taxes — The Company accounts for income taxes using the liability method, under which deferred tax assets and liabilities are determined based on the future tax consequences attributable to differences between the financial reporting carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards and net operating loss carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to be in effect when the differences are expected to reverse. The Company assesses the likelihood that deferred tax assets will be recovered from future taxable income, and a valuation allowance is established when necessary to reduce deferred tax assets to the amounts more likely than not expected to be realized. The Company recognizes and measures uncertain tax positions using a two‑step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Significant judgment is required to evaluate uncertain tax positions. The Company evaluates its uncertain tax positions on a regular basis. Its evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of audit and effective settlement of audit issues. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as income tax expense in the consolidated statements of operations. Revenue Recognition and Accounts Receivable Shipping and Handling Costs Advertising Costs Net advertising expenses were $74.4 million, $68.1 million and $60.1 million during 2015, 2014 and 2013, respectively, and are included in the accompanying consolidated statements of operations. Of the previously mentioned amounts, NATG operations net advertising expenses totaled $7.5 million, $10.7 million and $14.1 million during 2015, 2014 and 2013, respectively. The Company utilizes advertising programs to support vendors, including catalogs, internet and magazine advertising, and receives payments and credits from vendors, including consideration pursuant to volume incentive programs and cooperative marketing programs. The Company accounts for consideration from vendors as a reduction of cost of sales unless certain conditions are met showing that the funds are used for specific, incremental, identifiable costs, in which case the consideration is accounted for as a reduction in the related expense category, such as advertising expense. The amount of vendor consideration recorded as a reduction of selling, general and administrative expenses totaled $20.2 million, $38.8 million and $45.9 million during 2015, 2014 and 2013, respectively. Of the previously mentioned amounts, NATG operations vendor consideration recorded as a reduction of selling, general and administrative expenses totaled $12.1 million, $24.9 million and $28.3 million, respectively. Stock Based Compensation Net Income (Loss) Per Common Share Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock of the Company outstanding would have been anti‑dilutive. The weighted average number of stock options and restricted stock awards outstanding excluded from the computation of diluted earnings (loss) per share was 1.0 million shares, 0.8 million shares and 1.3 million shares for the years ended December 31, 2015, 2014 and 2013, respectively, due to their antidilutive effect. Employee Benefit Plans - Fair Value Measurements The fair value of goodwill, non-amortizing intangibles and long lived assets is measured in connection with the Company’s annual impairment testing as discussed above. Significant Concentrations - The Company Recent Accounting Pronouncements Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). These authorities issue numerous pronouncements, most of which are not applicable to the Company’s current or reasonably foreseeable operating structure. Below are the new authoritative pronouncements that management believes are relevant to Company’s current operations. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers I n September 2015, the FASB issued ASU 2015-16, Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments (Topic 805). ASU 2015-16 requires that an acquirer recognize adjustments to In November 2015, the FASB issued ASU 2015-17, Income Taxes Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases |
DISPOSITION
DISPOSITION | 12 Months Ended |
Dec. 31, 2015 | |
DISPOSITION [Abstract] | |
DISPOSITION | 2. DISPOSITION In March 2015 the Company announced a restructuring of its NATG business and closed 31 retail stores and a warehouse during the second quarter of fiscal 2015. The Company assessed the disposal group under ASU 2014-08 and concluded the closure of the disposal group to be a "strategic shift". However, this strategic shift was not determined to be a "major" strategic shift based on the portion of our consolidated business that the disposal group represented. Accordingly this disposal group is not presented in the accompanying financial statements as discontinued operations and remains in continuing operations for the twelve months ended December 31, 2015 and prior periods. On November 17, 2015 the Company and PCM entered into an asset purchase agreement under which PCM acquired certain business to business assets of NATG, including the TigerDirect brand, for $14 million in cash and the assumption of certain liabilities. The proceeds from the sale are recorded in special charges, net within NATG discontinued operations loss. PCM did not acquire cash, accounts receivable, inventory or assume trade payables in connection with the transaction. This transaction closed on December 1, 2015 and on that date, the parties entered into a transition services agreement to facilitate an orderly transition of the purchased assets and for the provision of various IT and back office support services. The Company announced that after the sale and certain transition services agreements with PCM were completed, the Company would completely exit the remaining NATG operations during early 2016. This exit plan included the closing of the three remaining retail stores and management operations, the closing of its NATG distribution center, and implementing a general workforce reduction representing a major strategic shift, and, as a result the B2B and Ecommerce business and the three remaining retail stores in operation at the time of the sale are presented as discontinued operations. A reconciliation of pretax loss of Discontinued Operations to the Net Loss of Discontinued Operations is as follows: Year Ended December 31, 2015 2014 2013 Net sales $ 1,053.4 $ 1,338.6 $ 1,376.9 Cost of sales 997.1 1,222.6 1,254.7 Gross profit 56.3 116.0 122.2 Selling, general and administrative expenses 109.9 119.7 126.0 Special charges, net 1.6 8.5 6.0 Foreign currency exchange (gain) loss (0.5 ) 0.1 (0.4 ) Interest and other income, net 0.1 0.2 - Loss of discontinued operations before income taxes (54.8 ) (12.5 ) (9.4 ) Benefit for income tax (3.3 ) (7.0 ) (8.6 ) Net loss from discontinued operations (51.5 ) (5.5 ) (0.8 ) |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2015 | |
ACQUISITIONS [Abstract] | |
ACQUISITIONS | 3. ACQUISITIONS On January 30, 2015, IPG acquired all of the outstanding equity interests of the Plant Equipment Group (“PEG”) from TAKKT America, a business-to-business direct marketer of maintenance, repair and operations (“MRO”) products with operations in North America for approximately $25.9 million in cash, $1.9 million of which was placed into an escrow account for one year to secure the sellers’ indemnification obligations under the purchase agreement. The following table summarizes the fair value of the assets acquired and liabilities assumed (in millions): Purchase price $ 25.9 Less: Cash 1.1 Accounts receivable 10.0 Inventory 11.8 Fixed assets 1.2 Prepaid expenses 0.6 Leases, net 0.8 Client lists 2.1 Trademarks 4.1 Accounts payable (7.5 ) Accrued expenses (3.7 ) Other liabilities (0.2 ) Goodwill $ 5.6 The amount allocated to goodwill reflects the benefits the Company expects to realize from the growth of the acquisition’s operations. For the twelve months ended December 31, 2015 PEG generated approximately $89.1 million in revenue and approximately $1.1 million of pretax income. The Company’s unaudited pro forma revenue and net loss for the years ended December 31, 2015 and 2014 below have been prepared as if PEG had been purchased on January 1, 2014 (in millions). Unaudited Pro Forma 2015 2014 Revenue $ 1,861.5 $ 2,204.4 Net loss $ (48.3 ) $ (32.4 ) The unaudited pro forma financial information above is not necessarily indicative of what the Company’s consolidated results actually would have been if the acquisitions had been completed at the beginning of the respective periods. In addition, the unaudited pro forma information above does not attempt to project the Company’s future results. On June 12, 2014, the Company acquired Misco Solutions (f/k/a SCC Services B.V.), a supplier of business-to-business IT products and services with operations in the Netherlands. The purchase price (after giving effect to the conversion of Euros to U.S. dollars) was approximately $7.3 million in cash (5.4 million Euro), $0.6 million (0.4 million Euro) of which was placed into an escrow account for one year to secure the sellers’ indemnification obligations under the purchase agreement. The Company completed its purchase price allocation and recorded assets of approximately $1.5 million for Goodwill, $1.0 million for Client Lists and $0.2 million for Trademarks. The operating results of Misco Solutions are included in the accompanying consolidated statements of operations from the date of acquisition in the EMEA segment. The Company has determined that this was not a material acquisition for further financial statement disclosure purposes. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended |
Dec. 31, 2015 | |
GOODWILL AND INTANGIBLES [Abstract] | |
GOODWILL AND INTANGIBLES | 4. GOODWILL AND INTANGIBLES Goodwill The following table provides information related to the carrying value of goodwill (in millions): December 31, December 31, 2015 2014 Balance, January 1 $ 3.9 $ 2.4 Additions associated with acquisition 5.6 1.5 Foreign currency translation (0.3 ) - Balance, December 31 $ 9.2 $ 3.9 Indefinite-lived intangible assets: The December 31, December 31, 2015 2014 Balance January 1 $ 2.3 $ 2.3 Additions associated with acquisition 4.1 - Balance December 31 $ 6.4 $ 2.3 Definite-lived intangible assets: The following table summarizes information related to definite-lived intangible assets (in millions): December 31, December 31, 2015 2014 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Weighted avg useful life Gross Carrying Amount Accumulated Amortization Weighted avg useful life Client lists 5-10 yrs $ 5.5 $ 3.0 8.3 $ 3.6 $ 2.6 7.3 Leases 3-6 yrs 0.8 0.1 4.7 - - - Trademark 1 yr 0.2 0.2 - 0.2 - - Total $ 6.5 $ 3.3 7.3 $ 3.8 $ 2.6 7.3 The aggregate amortization expense for these intangibles was approximately $0.7 million in 2015. The estimated amortization for future years ending December 31 is as follows (in millions): 2016 $ 0.5 2017 0.5 2018 0.4 2019 and after 1.8 Total $ 3.2 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 5. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consist of the following (in millions): December 31, 2015 2014 Land and buildings $ 17.7 $ 18.6 Furniture and fixtures, office, computer and other equipment and software 108.7 127.6 Leasehold improvements 21.8 26.8 148.2 173.0 Less accumulated depreciation and amortization 109.9 131.8 Property, plant and equipment, net $ 38.3 $ 41.2 Included in property, plant and equipment are assets under capital leases, as follows (in thousands): 2015 2014 Office, computer and other equipment $ 17.5 $ 17.7 Less: Accumulated amortization 16.3 14.6 $ 1.2 $ 3.1 Depreciation charged to operations for property, plant and equipment including capital leases in 2015, 2014, and 2013 was $11.1 million, $15.4 million and $17.4 million, respectively. NATG operations accounted for $3.1 million, $8.5 million and $11.9 million, of these amounts in 2015, 2014 and 2013, respectively. |
CREDIT FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2015 | |
CREDIT FACILITIES [Abstract] | |
CREDIT FACILITIES | 6. CREDIT FACILITIES The Company maintains a $125.0 million (which may be increased to $200.0 million, subject to certain conditions) secured revolving credit agreement with a group of financial institutions which provides for borrowings in the United States. The credit facility was scheduled to expire in October 2015 and the Company entered into an amended and restated revolving credit facility on October 13, 2015. The new facility has a maturity date of October 31, 2016. Availability is subject to a borrowing base formula that takes into account eligible receivables and eligible inventory. Borrowings are secured by substantially all of the Company’s assets, including accounts receivable, inventory and certain other assets, subject to limited exceptions. The credit agreement contains certain operating, financial and other covenants, including limits on annual levels of capital expenditures, availability tests related to payments of dividends and stock repurchases and fixed charge coverage tests related to acquisitions. The revolving credit agreement requires that a minimum level of availability be maintained. If such availability is not maintained, the Company will be required to maintain a fixed charge coverage ratio (as defined). The borrowings under the agreement are subject to borrowing base limitations of up to 85% of eligible accounts receivable and up to 40% of qualified inventories. The interest rate under this facility is computed at applicable market rates based on LIBOR or the Prime Rate, plus an applicable margin. The applicable margin varies based on borrowing base availability. As of December 31, 2015, eligible collateral under this agreement was $37.9 million, total availability was $33.0 million, total outstanding letters of credit were $4.9 million and there were no outstanding advances. The Company was in compliance with all of the covenants under this facility as of December 31, 2015. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following (in millions): December 31, 2015 2014 Payroll and employee benefits $ 31.0 $ 34.6 Advertising 7.6 11.9 Sales and VAT tax payable 5.1 9.3 Freight 5.6 8.0 Reorganization costs 6.3 4.7 Deferred revenue 5.4 5.1 Other 18.0 21.8 $ 79.0 $ 95.4 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2015 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | 8. LONG-TERM DEBT The Company (through a subsidiary) had an outstanding Bond financing with the Development Authority of Jefferson, Georgia (the “Authority”). The Bonds were issued by the Authority and purchased by GE Government Finance Inc., and were to mature on October 1, 2018. The proceeds from the Bond were used to finance capital equipment purchased for the Company’s distribution facility located in Jefferson, Georgia. The purchase and installation of the equipment for the facility was completed by December 31, 2011. Pursuant to the transaction, the Company transferred to the Authority, for consideration consisting of the Bond proceeds, ownership of the equipment and the Authority leased the equipment to the Company’s subsidiary pursuant to a capital equipment lease expiring October 1, 2018. Under the capital equipment lease, the Company has the right to acquire ownership of the equipment at any time for a purchase price sufficient to pay off all principal and interest on the Bonds, plus $1.00. The Company exercised this right in November 2015 paying off all outstanding principal plus $1.00 and acquired title to all of the capital equipment. This facility was paid off in November 2015. Long-term debt consists of (in millions): December 31, 2015 2014 Warehouse capitalized equipment lease $ - $ 2.2 Other capitalized equipment lease 1.0 1.7 Subtotal 1.0 3.9 Less: current portion 0.6 2.8 $ 0.4 $ 1.1 The aggregate maturities of long-term debt outstanding at December 31, 2015 are as follows (in millions): 2016 2017 2018 Maturities $ 0.6 $ 0.3 $ 0.1 |
SPECIAL CHARGES, NET
SPECIAL CHARGES, NET | 12 Months Ended |
Dec. 31, 2015 | |
SPECIAL CHARGES, NET [Abstract] | |
SPECIAL CHARGES, NET | 9. SPECIAL CHARGES, NET The Company’s NATG segment incurred special charges of approximately for the year, of which $25.6 million is included in continuing operations, $1.6 million is included in discontinued operations. Included in the charges noted above is $2.5 million for the year of professional costs, net of $1.0 million from an insurance recovery settlement . EMEA incurred special charges of approximately $0.7 million in 2015 related to the termination of the Chief Executive of EMEA. Amounts related to this action that are unpaid at December 31, 2015 are recorded in Accrued expenses and other current liabilities in the accompanying Consolidated Balance Sheets. EMEA recorded $0.1 million benefit from adjustments to previously accrued workforce reductions and personnel costs. The following table details the associated liabilities incurred related to the Technology Products segments special charges (in millions): EMEA- Workforce Reductions and Personnel Costs NATG- Workforce Reductions NATG- Other Exit Costs Total Balance, January 1, 2015 $ 4.7 - $ - $ 4.7 Charged to expense 0.4 5.5 33.0 38.9 Paid or otherwise settled (4.8 ) (2.8 ) (16.7 ) (24.3 ) Balance, December 31, 2015 $ 0.3 2.7 $ 16.3 $ 19.3 The Company conducted an evaluation of its long-lived assets in certain EMEA locations (Germany, Italy, Spain and Sweden) and, as a result of negative cash flows in 2015 and a forecast for continued cash use, concluded that those assets were impaired and as a result, an impairment charge of approximately $0.7 million was recorded to adjust the long-lived assets to fair market value. IPG incurred special charges of approximately $1.0 million during 2015. In the fourth quarter, IPG recorded $0.6 million for lease termination costs related to one of their leased facilities. In the first quarter of 2015, IPG recorded $0.4 million of special charges related to severance costs associated with the integration of PEG. The unpaid severance cost and unpaid lease costs are included in the Condensed Consolidated Balance Sheet within Accrued expenses and other current liabilities and Other liabilities. |
SHAREHOLDER'S EQUITY
SHAREHOLDER'S EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | 10. SHAREHOLDERS’ EQUITY Stock-Based Compensation Plans The Company currently has four equity compensation plans which reserve shares of common stock for issuance to key employees, directors, consultants and advisors to the Company. The following is a description of these plans: The 1995 Stock Option Plan for Non-Employee Directors The 1999 Long-term Stock Incentive Plan, as amended (“1999 Plan”) The 2006 Stock Incentive Plan For Non-Employee Directors - The 2010 Long-term Stock Incentive Plan (“2010 Plan”) 7,500,000 Shares issued under our share-based compensation plans are usually issued from shares of our common stock held in the treasury. Compensation cost related to non-qualified stock options recognized in operating results (selling, general and administrative expense) for 2015, 2014 and 2013 was $0.2 million, $0.7 million, and $1.1 million respectively, and of these amounts NATG segment’s compensation cost related to non-qualified stock options was de minimis in 2015 and 2014 and $0.2 million in 2013. The related future income tax benefits recognized for 2015, 2014 and 2013 were $0.1 million, $0.2 million and $0.4 million, respectively. Stock Options The following table presents the weighted-average assumptions used to estimate the fair value of options granted in 2015, 2014 and 2013: 2015 2014 2013 Expected annual dividend yield 0 % 0 % 0 % Risk-free interest rate 1.73 % 2.02 % 1.66 % Expected volatility 40.2 % 46.9 % 41.1 % Expected life in years 6.3 6.2 7.9 The following table summarizes information concerning outstanding and exercisable options: Weighted Average 2015 2014 2013 Shares Exercise Price Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 1,127,250 $ 16.12 1,175,499 $ 16.11 1,353,059 $ 15.88 Granted 25,000 $ 10.62 90,000 $ 13.56 60,000 $ 9.54 Exercised (4,000 ) $ 6.30 (33,749 ) $ 9.78 (34,310 ) $ 3.04 Cancelled or expired (193,625 ) $ 16.29 (104,500 ) $ 15.83 (203,250 ) $ 14.84 Outstanding at end of year 954,625 $ 15.98 1,127,250 $ 16.12 1,175,499 $ 16.11 Options exercisable at year end 832,125 839,500 772,749 Weighted average fair value per option granted during the year $ 4.44 $ 6.46 $ 4.44 The total intrinsic value of options exercised was de minimis for 2015 and $0.2 million for 2014 and 2013. The following table summarizes information about options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) at December 31, 2015: Range of Exercise Prices Number Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in millions) $ 5.00 to $ 10.00 47,202 $ 9.51 7.46 $ - $ 10.01 to $ 15.00 390,950 $ 12.84 4.98 - $ 15.01 to $ 20.00 431,763 $ 18.22 3.93 - $ 20.01 to $ 20.15 100,000 $ 20.15 1.04 - $ 5.00 to $ 20.15 969,915 $ 15.83 4.22 $ - The aggregate intrinsic value in the tables above represents the total pretax intrinsic value (the difference between the closing stock price on the last day of trading in 2015 and the exercise price) that would have been received by the option holders had all options been exercised on December 31, 2015. This value will change based on the fair market value of the Company’s common stock. The following table reflects the activity for all unvested stock options during 2015: Shares Weighted Average Grant- Date Fair Value Unvested at January 1, 2015 287,750 $ 8.21 Granted 25,000 $ 4.44 Vested (132,125 ) $ 8.67 Forfeited (58,125 ) $ 7.22 Unvested at December 31, 2015 122,500 $ 7.40 At December 31, 2015, there was approximately $0.2 million of unrecognized compensation costs related to unvested stock options, which is expected to be recognized over a weighted average period of 1.48 years. The total fair value of stock options vested during 2015, 2014 and 2013 was $1.1 million, $1.2 million and $1.6 million, respectively. Restricted Stock and Restricted Stock Units In August 2010, the Company granted 175,000 RSUs under the 2010 Plan to a key employee who is also a Company director. These RSUs have none of the rights as other shares of common stock, other than rights to cash dividends, until common stock is distributed. This RSU award was a non-performance award which vests in ten equal annual installments of 17,500 units beginning May 15, 2011 and each May 15, thereafter. Compensation expense related to this RSU award was approximately $0.2 million during each of 2015 and 2014 and $0.3 million in 2013. In October 2011, the Company granted 100,000 RSUs under the 2010 Plan to, at that time, a key employee. This RSU award was a non-performance award which vested in ten equal annual installments of 10,000 units beginning October 3, 2012 and each October 3 thereafter. The termination without cause of this key employee during 2013 caused the accelerated vesting of the remaining 90,000 shares in accordance with the restricted stock agreement with the Company. Compensation expense related to these restricted stock awards was zero during each of 2015 and 2014 and approximately $0.8 million in 2013. In November 2011, the Company granted 100,000 RSUs under the 2010 Plan to a key employee who is also a Company director. This RSU award was a non-performance award which vests in ten equal annual installments of 10,000 units beginning November 14, 2012 and each November 14 thereafter. Compensation expense related to this RSU award was approximately $0.2 million during each of 2015, 2014 and 2013. In January 2012 and March 2012, the Company granted 50,000 RSUs under the 2010 Plan to each of two key employees. These RSU awards were non-performance awards which vest in ten equal annual installments of 10,000 units beginning January 3, 2013 and March 1, 2013, respectively, and each January 3 and March 1, thereafter. The termination without cause of one of these key employees during 2015 caused the accelerated vesting of the remaining 35,000 shares in accordance with the restricted stock agreement with the Company. Compensation expense related to these RSU awards were approximately $0.4 million, $0.3 million and $0.4 million during each of 2015, 2014 and 2013, respectively. In July 2015, the Company granted 23,620 RSUs under the 2010 Plan to a key employee. This RSU award was a non-performance award which vests in four equal annual installments of 5,905 units beginning July 6, 2015 and each July 6 thereafter. Compensation expense related to this RSU award was approximately $0.1 million in 2015. Share-based compensation expense for restricted stock issued to Directors was $0.1 million in each of 2015, 2014 and 2013. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 11. INCOME TAXES The components of income (loss) from continuing operations before income taxes are as follows (in millions): Year Ended December 31, 2015 2014 2013 United States $ (14.5 ) $ 1.9 $ (11.1 ) Foreign (20.3 ) (22.0 ) (1.3 ) Total $ (34.8 ) $ (20.1 ) $ (12.4 ) The (benefit) provision for income taxes from continuing operations consists of the following (in millions): Year Ended December 31, 2015 2014 2013 Current: Federal $ 3.1 $ 7.6 $ (0.3 ) State 0.6 0.4 0.4 Foreign 4.3 3.2 3.4 Total current 8.0 11.2 3.5 Deferred: Federal 0.1 - 20.5 State - (0.3 ) 5.3 Foreign 5.4 1.0 1.3 Total deferred 5.5 0.7 27.1 TOTAL $ 13.5 $ 11.9 $ 30.6 Tax benefit from discontinued operations was $(3.3) million, $(7.0) million and $(8.6) million for the years ended December 31, 2015, 2014 and 2013, respectively. Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations. A reconciliation of the difference between the income tax expense and the computed income tax expense based on the Federal statutory corporate rate is as follows (in millions): Year Ended December 31 2015 2014 2013 Income tax at Federal statutory rate $ (12.2 ) (35.0 )% $ (7.1 ) (35.0 )% $ (4.3 ) (35.0 )% Foreign taxes at rates different from the U.S. rate 7.7 22.2 5.2 25.9 2.2 18.1 State and local income taxes, net of federal tax benefit (1.4 ) (3.9 ) 1.6 8.2 0.5 3.9 Impact of state rate changes 0.7 1.9 - - - - Changes in valuation allowances 18.8 54.2 12.4 61.5 33.5 271.7 Change in deferred tax liability - - - - (1.2 ) (9.6 ) Non-deductible items 0.1 0.2 - - 0.1 0.3 Other items, net (0.2 ) (0.8 ) (0.2 ) (1.1 ) (0.2 ) (1.4 ) Income tax $ 13.5 38.8 % $ 11.9 59.5 % $ 30.6 248.0 % The deferred tax assets and liabilities are comprised of the following (in millions): December 31, 2015 2014 Assets: Accrued expenses and other liabilities $ 12.4 $ 9.0 Inventory 5.6 4.2 Depreciation 0.8 2.4 Intangible & other 13.0 13.4 Net operating loss and credit carryforwards 57.4 35.0 Valuation allowances (80.6 ) (48.8 ) Total non-current deferred tax assets 8.6 15.2 Liabilities : Non-current: Other $ 0.4 $ - Total non-current liabilities $ 0.4 $ - During the current year the Company recorded valuation allowances against deferred tax assets of approximately $18.8 million. These valuation allowances were recorded against U.S. federal deferred tax assets of approximately $8.7 million, foreign deferred tax assets of $9.0 million and state deferred tax asset valuation allowances of approximately $1.1 million. These valuation allowances were recorded primarily as a result of Managements’ belief that the deferred assets are not likely to be realized due to recent losses. The Company has not provided for federal income taxes applicable to the undistributed earnings of its foreign subsidiaries of approximately $50.0 million as of December 31, 2015, since these earnings are considered indefinitely reinvested. The Company has gross foreign net operating loss carryforwards of $108.1 million which expire through 2031 and gross U.S. federal net operating loss carry forwards of $53.6 million which expire through 2035. The Company records these benefits as assets to the extent that utilization of such assets is more likely than not; otherwise, a valuation allowance has been recorded. The Company has also provided valuation allowances for certain state deferred tax assets and net operating loss carryforwards where it is not likely they will be realized. As of December 31, 2015, the Company has approximately $1.6 million in federal tax credit carryforwards expiring in years through 2025 and various amounts of state and foreign net operating loss carryforwards expiring through 2035. The Company has recorded valuation allowances of approximately $80.6 million, including valuations against the federal and state deductibility of temporary differences including net operating losses of $43.6 million and $9.8 million respectively, foreign tax credits of $1.6 million and tax effected temporary differences and net operating loss carryforwards in foreign jurisdictions of $25.6 million. The Company is routinely audited by federal, state and foreign tax authorities with respect to its income taxes. The Company regularly reviews and evaluates the likelihood of audit assessments. The Company’s federal income tax returns have been audited through 2013. The Company has not signed any consent to extend the statute of limitations for any subsequent years. The Company’s significant state tax returns have been audited through 2007. The Company considers its significant tax jurisdictions in foreign locations to be the United Kingdom, Canada, France, Italy and Germany. The Company remains subject to examination in the United Kingdom for years after 2011, in Canada for years after 2013, in France for years after 2012, in Italy for years after 2009 and in Germany for years after 2012. In accordance with the guidance for accounting for uncertainty in income taxes the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit of an uncertain tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount that is greater than 50% likely to be realized upon settlement with the tax authority. To the extent we prevail in matters for which accruals have been established or are required to pay amounts in excess of accruals, our effective tax rate in a given financial statement period could be affected. As of December 31, 2015 the Company had no uncertain tax positions. Interest and penalties, if any, are recorded in income tax expense. There were no accrued interests or penalty charges related to unrecognized tax benefits recorded in income tax expense in 2015 or 2014. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | 12. COMMITMENTS, CONTINGENCIES AND OTHER MATTERS Leases At December 31, 2015, the future minimum annual lease payments for capital leases and related and third-party operating leases were as follows (in millions): Capital Leases Operating Leases Total 2016 0.6 $ 24.8 $ 25.4 2017 0.3 25.0 25.3 2018 0.1 22.1 22.2 2019 - 20.2 20.2 2020 - 16.3 16.3 2021-2025 - 44.2 44.2 2026-2030 - 22.5 22.5 Thereafter - 4.4 4.4 Total minimum lease payments 1.0 179.5 180.5 Less: sublease rental income - 9.2 9.2 Lease obligation net of subleases 1.0 $ 170.3 171.3 Less: amount representing interest 0.0 Present value of minimum capital lease payments (including current portion of $0.6) $ 1.0 Annual rent expense aggregated approximately $26.4 million, $31.5 million and $34.6 million in 2015, 2014 and 2013, respectively. Included in rent expense was $1.0 million in 2015, $0.9 million in 2014 and 2013, to related parties. Rent expense is net of sublease income of $0.1 million for 2015, $0.0 million for 2014, and $0.1 million for 2013, respectively. NATG operations annual rent expense totaled approximately $10.7 million, $18.3 million and $20.6 million for 2015, 2014 and 2013, respectively. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. The Company recognizes rent expense on a straight‑line basis over the lease period and has accrued for rent expense incurred but not paid. Deferred rent represents the difference between actual operating lease payments due and straight‑line rent expense. The excess is recorded as a deferred rent liability in the early periods of the lease, when cash payments are generally lower than straight‑line rent expense, and are reduced in the later periods of the lease when payments begin to exceed the straight‑line expense. The Company also accounts for leasehold improvement incentives within its deferred rent liability. Other Matters The Company and its subsidiaries are involved in various lawsuits, claims, investigations and proceedings including commercial, employment, consumer, personal injury and health and safety law matters, which are being handled and defended in the ordinary course of business. In addition, the Company is subject to various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that are incorporated in a broad spectrum of products the Company sells. The Company is also audited by (or has initiated voluntary disclosure agreements with) numerous governmental agencies in various countries, including U.S. Federal and state authorities, concerning potential income tax, sales tax and unclaimed property liabilities. These matters are in various stages of investigation, negotiation and/or litigation, and are being vigorously defended. The Company is also being audited by an entity representing 45 states seeking recovery of “unclaimed property”. The Company is complying with the audit and is providing requested information. Although the Company does not expect, based on currently available information, that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial position or results of operations, the ultimate outcome is inherently unpredictable. Therefore, judgments could be rendered or settlements entered, that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable and estimable. In this regard, the Company establishes accrual estimates for its various lawsuits, claims, investigations and proceedings when it is probable that an asset has been impaired or a liability incurred at the date of the financial statements and the loss can be reasonably estimated. At December 31, 2015 the Company has established accruals for certain of its various lawsuits, claims, investigations and proceedings based upon estimates of the most likely outcome in a range of loss or the minimum amounts in a range of loss if no amount within a range is a more likely estimate. The Company does not believe that at December 31, 2015 any reasonably possible losses in excess of the amounts accrued would be material to the financial statements. Following the previously reported independent investigation of Gilbert Fiorentino and Carl Fiorentino by our Audit Committee in 2011 (in response to a whistleblower report) for a variety of improper acts, the subsequent termination of their employment and the entering into by Gilbert Fiorentino of a settlement agreement with the Securities and Exchange Commission, on November 20, 2014 the United States Attorney’s Office (“USAO”) for the Southern District of Florida announced that Gilbert Fiorentino and Carl Fiorentino had been charged with mail fraud, wire fraud and money laundering in connection with a scheme to defraud TigerDirect and Systemax. Specifically, the charges set forth a scheme to obtain kickbacks and other benefits, and to conceal this illicit income from the IRS, all while Gilbert Fiorentino and Carl Fiorentino were employed as senior executives at NATG. On December 2, 2014, the United States Attorney’s Office announced that Gilbert Fiorentino and Carl Fiorentino had pled guilty to various charges, and on March 3, 2015, Gilbert Fiorentino and Carl Fiorentino were sentenced to sixty and eighty months’ imprisonment, respectively. On March 1, 2016, the United States District Court for the Southern District of Florida awarded the Company approximately $36 million in restitution from Gilbert and Carl Fiorentino, which the Company will utilize all available means to collect. The Company's Audit Committee, with the assistance of independent outside counsel, has been cooperating with a request by the USAO that it assist the USAO’s investigation into allegations arising from the Fiorentino investigation regarding possible executive officer conflicts of interest and internal controls and books and records violations. The Company’s Audit Committee, along with the Audit Committee’s independent outside counsel, conducted an investigation of the allegations and its counsel presented the Audit Committee’s findings to the USAO in July 2015. The Company has been advised that the Audit Committee investigation has found no evidence of executive officer conflicts of interest, and no material evidence of internal controls violations or books and records violations. The Audit Committee considers its investigation to be closed at this time and the Company has been advised there has been no further contact from the USAO. Notwithstanding, it is not possible at this time to predict if or when the USAO will conclude its investigation; what subject(s) will be investigated; what actions, if any, may be taken by the government as a result of its investigation; or whether any of these matters will have a material adverse impact on the Company. |
SEGMENT AND RELATED INFORMATION
SEGMENT AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
SEGMENT AND RELATED INFORMATION [Abstract] | |
SEGMENT AND RELATED INFORMATION | 13. SEGMENT AND RELATED INFORMATION The Company operated and is internally managed in three reportable business segments— Industrial Products Group (“IPG”), EMEA Technology Products Group (“EMEA”) and what was the Company’s largest business in terms of revenue, North America Technology Products Group (NATG”). EMEA and NATG were aggregated in certain prior years as they met the aggregation criteria Smaller business operations and corporate functions are aggregated and reported as an additional segment – Corporate and Other (“Corporate”). On December 1, 2015, we sold certain assets of the NATG business and are currently winding down its remaining operations. The Company’s chief operating decision-maker is the Company’s Chief Executive Officer (“CEO”). The CEO, in his role as Chief Operating Decision Maker (“CODM”), evaluates segment performance based on operating income (loss) from continuing operations. The CODM reviews assets and makes significant capital expenditure decisions for the Company on a consolidated basis only. The accounting policies of the segments are the same as those of the Company. Corporate costs not identified with the disclosed segments are grouped as “Corporate and other expenses.” Financial information relating to the Company’s continuing operations by reportable segment was as follows (in millions): Year Ended December 31, 2015 2014 2013 Net Sales: IPG $ 698.6 $ 556.0 $ 473.8 EMEA 1,052.9 1,189.9 1,095.4 NATG 97.8 352.4 401.0 Corporate and other 5.4 5.9 5.2 Consolidated $ 1,854.7 $ 2,104.2 $ 1,975.4 Depreciation and Amortization Expense: IPG $ 3.8 $ 2.1 $ 2.2 EMEA 3.9 4.0 2.9 NATG 0.6 4.1 7.0 Corporate and other 1.0 1.3 1.0 Consolidated $ 9.3 $ 11.5 $ 13.1 Operating Income (Loss): IPG $ 43.7 $ 41.0 $ 40.0 EMEA (10.8 ) (21.2 ) (4.2 ) NATG (38.2 ) (17.9 ) (26.6 ) Corporate and other expenses (18.8 ) (15.6 ) (20.0 ) Consolidated $ (24.1 ) $ (13.7 ) $ (10.8 ) Total Assets IPG $ 175.3 $ 135.5 $ 110.0 EMEA 238.3 313.3 331.5 NATG 26.6 187.6 266.6 Corporate and other 269.9 260.5 234.1 Consolidated $ 710.1 $ 896.9 $ 942.2 Financial information relating to the Company’s operations by geographic area was as follows (in millions): Year Ended December 31, 2015 2014 2013 Net Sales: United States $ 676.8 $ 723.2 674.2 United Kingdom 335.7 471.9 468.5 France 382.6 383.2 335.4 Other Europe 334.5 334.8 291.5 Other North America 125.1 191.1 205.8 Consolidated $ 1,854.7 $ 2,104.2 1,975.4 Long-lived Assets: United States $ 18.1 $ 17.1 $ 32.3 United Kingdom 15.6 17.5 18.7 France 1.1 0.8 0.9 Other Europe and Asia 3.5 5.5 6.4 Other North America - 0.3 1.1 Consolidated $ 38.3 $ 41.2 $ 59.4 Net sales are attributed to countries based on location of selling subsidiary. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 14. QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly financial data, excluding discontinued operations, is as follows (in millions, except for per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2015: Net sales $ 512.1 $ 454.1 $ 423.2 $ 465.3 Gross profit $ 86.5 $ 87.0 $ 82.3 $ 86.9 Net income (loss) $ (18.6 ) $ (19.9 ) $ 1.8 $ (11.6 ) Net loss per common share: Basic $ (0.50 ) $ (0.54 ) $ 0.05 $ (0.31 ) Diluted $ (0.50 ) $ (0.54 ) $ 0.05 $ (0.31 ) 2014: Net sales $ 541.2 $ 505.6 $ 505.4 $ 552.0 Gross profit $ 98.2 $ 93.3 $ 89.9 $ 95.8 Net loss $ (0.3 ) $ (7.5 ) $ (2.4 ) $ (21.8 ) Net loss per common share: Basic $ (0.01 ) $ (0.20 ) $ (0.06 ) $ (0.59 ) Diluted $ (0.01 ) $ (0.20 ) $ (0.06 ) $ (0.59 ) |
SUBSEQUENT EVENTS (UNAUDITED)
SUBSEQUENT EVENTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
SUBSEQUENT EVENTS (UNAUDITED) [Abstract] | |
SUBSEQUENT EVENTS (UNAUDITED) | 15. SUBSEQUENT EVENTS (UNAUDITED) In January 2016 PCM exercised its option (for approximately $0.4 million) to acquire the consumer customer lists and related information used in connection with or generated by the NATG web business in the United States. In February 2016, the Company and PCM completed delivery of the remaining assets. As of this filing, the Company has completed most of the NATG wind down activities, including selling its remaining inventory, closing the two remaining retail stores and closing its remaining distribution center; employee reductions were primarily completed in the fourth quarter of 2015 and the first quarter of 2016 and currently approximately 30 employees remain at the Miami location. These employees are performing wind-down activities and it is anticipated these activities will be substantially complete by the end of the second quarter of 2016; any remaining activities after that date will be undertaken by the Company’s Corporate function in New York. The Company anticipates completing all wind down of remaining operations in 2016, other than settling of remaining lease obligations. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS For the years ended December: (in millions) Description Balance at Beginning of Period Charged to Expenses Write-offs Other Balance at End of Period Allowance for doubtful accounts 2015 $ 6.5 $ 7.9 $ (4.8 ) $ 0.2 (1) $ 9.8 2014 $ 5.8 $ 8.9 $ (8.3 ) $ 0.1 (2) $ 6.5 2013 $ 6.3 $ 4.0 $ (4.5 ) $ - $ 5.8 Allowance for sales returns 2015 $ 9.3 $ 5.9 $ - $ (9.3 )(3) $ 5.9 2014 $ 10.9 $ 9.3 $ - $ (10.9 )(3) $ 9.3 2013 $ 9.2 $ 10.9 $ - $ (9.2 )(3) $ 10.9 Allowance for inventory returns 2015 $ (7.8 ) $ (4.9 ) $ - $ 7.8 (3) $ (4.9 ) 2014 $ (9.2 ) $ (7.8 ) $ - $ 9.2 (3) $ (7.8 ) 2013 $ (8.0 ) $ (9.2 ) $ - $ 8.0 (3) $ (9.2 ) Allowance for deferred tax assets 2015 Noncurrent $ 48.8 $ 35.8 $ - $ (4.0 ) $ 80.6 2014 Noncurrent $ 39.7 $ 9.1 $ - $ - $ 48.8 2013 Noncurrent $ 11.1 $ 28.6 $ - $ - $ 39.7 (1) Other relates to P.E.G.acquisition allowance for doubtful accounts as of acquisition date. (2) Other relates to Misco Solutions (f/k/a SCC Services B.V.) acquisition allowance for doubtful accounts as of acquisition date. (3) Amounts represent gross revenue and cost reversals to the estimated sales returns and allowances accounts. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Reclassifications | Reclassifications |
Fiscal Year | Fiscal Year |
Use of Estimates In Financial Statements | Use of Estimates In Financial Statements Changes in estimates are made when circumstances warrant. Such changes in estimates and refinements in estimation methodologies are reflected in reported results of operations; if material, the effects of changes in estimates are disclosed in the notes to the consolidated financial statements. Significant estimates and assumptions by management affect the allowance for doubtful accounts, sales return returns and allowances, inventory reserves, allowances for cooperative advertising, vendor drop shipments, the carrying value of long‑lived assets (including goodwill and intangible assets), the carrying value, capitalization and amortization of software development costs, the provision for income taxes and related deferred tax accounts, certain accrued liabilities, revenue recognition, contingencies, sub-rental lease income, litigation and related legal accruals and the value attributed to employee stock options and other stock‑based awards. |
Foreign Currency Translation | Foreign Currency Translation |
Cash | Cash |
Inventories | Inventories |
Property, Plant and Equipment | Property, Plant and Equipment Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of operations in the period realized. |
Internal-Use Software | Internal-Use Software |
Evaluation of Long-lived Assets | Evaluation of Long-lived Assets |
Business Combinations | Business Combinations |
Goodwill and Intangible Assets | Goodwill and Intangible Assets |
Income Taxes | Income Taxes — The Company accounts for income taxes using the liability method, under which deferred tax assets and liabilities are determined based on the future tax consequences attributable to differences between the financial reporting carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards and net operating loss carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to be in effect when the differences are expected to reverse. The Company assesses the likelihood that deferred tax assets will be recovered from future taxable income, and a valuation allowance is established when necessary to reduce deferred tax assets to the amounts more likely than not expected to be realized. The Company recognizes and measures uncertain tax positions using a two‑step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Significant judgment is required to evaluate uncertain tax positions. The Company evaluates its uncertain tax positions on a regular basis. Its evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of audit and effective settlement of audit issues. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as income tax expense in the consolidated statements of operations. |
Revenue Recognition and Accounts Receivable | Revenue Recognition and Accounts Receivable |
Shipping and Handling Costs | Shipping and Handling Costs |
Advertising Costs | Advertising Costs Net advertising expenses were $74.4 million, $68.1 million and $60.1 million during 2015, 2014 and 2013, respectively, and are included in the accompanying consolidated statements of operations. Of the previously mentioned amounts, NATG operations net advertising expenses totaled $7.5 million, $10.7 million and $14.1 million during 2015, 2014 and 2013, respectively. The Company utilizes advertising programs to support vendors, including catalogs, internet and magazine advertising, and receives payments and credits from vendors, including consideration pursuant to volume incentive programs and cooperative marketing programs. The Company accounts for consideration from vendors as a reduction of cost of sales unless certain conditions are met showing that the funds are used for specific, incremental, identifiable costs, in which case the consideration is accounted for as a reduction in the related expense category, such as advertising expense. The amount of vendor consideration recorded as a reduction of selling, general and administrative expenses totaled $20.2 million, $38.8 million and $45.9 million during 2015, 2014 and 2013, respectively. Of the previously mentioned amounts, NATG operations vendor consideration recorded as a reduction of selling, general and administrative expenses totaled $12.1 million, $24.9 million and $28.3 million, respectively. |
Stock Based Compensation | Stock Based Compensation |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock of the Company outstanding would have been anti‑dilutive. The weighted average number of stock options and restricted stock awards outstanding excluded from the computation of diluted earnings (loss) per share was 1.0 million shares, 0.8 million shares and 1.3 million shares for the years ended December 31, 2015, 2014 and 2013, respectively, due to their antidilutive effect. |
Employee Benefit Plans | Employee Benefit Plans - |
Fair Value Measurements | Fair Value Measurements The fair value of goodwill, non-amortizing intangibles and long lived assets is measured in connection with the Company’s annual impairment testing as discussed above. |
Significant Concentrations | Significant Concentrations - The Company |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). These authorities issue numerous pronouncements, most of which are not applicable to the Company’s current or reasonably foreseeable operating structure. Below are the new authoritative pronouncements that management believes are relevant to Company’s current operations. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers I n September 2015, the FASB issued ASU 2015-16, Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments (Topic 805). ASU 2015-16 requires that an acquirer recognize adjustments to In November 2015, the FASB issued ASU 2015-17, Income Taxes Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases |
DISPOSITION (Tables)
DISPOSITION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DISPOSITION [Abstract] | |
Reconciliation of Pretax Loss of Discontinued Operations to Loss of Discontinued Operations | A reconciliation of pretax loss of Discontinued Operations to the Net Loss of Discontinued Operations is as follows: Year Ended December 31, 2015 2014 2013 Net sales $ 1,053.4 $ 1,338.6 $ 1,376.9 Cost of sales 997.1 1,222.6 1,254.7 Gross profit 56.3 116.0 122.2 Selling, general and administrative expenses 109.9 119.7 126.0 Special charges, net 1.6 8.5 6.0 Foreign currency exchange (gain) loss (0.5 ) 0.1 (0.4 ) Interest and other income, net 0.1 0.2 - Loss of discontinued operations before income taxes (54.8 ) (12.5 ) (9.4 ) Benefit for income tax (3.3 ) (7.0 ) (8.6 ) Net loss from discontinued operations (51.5 ) (5.5 ) (0.8 ) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACQUISITIONS [Abstract] | |
Schedule of Purchase Price Allocation | The following table summarizes the fair value of the assets acquired and liabilities assumed (in millions): Purchase price $ 25.9 Less: Cash 1.1 Accounts receivable 10.0 Inventory 11.8 Fixed assets 1.2 Prepaid expenses 0.6 Leases, net 0.8 Client lists 2.1 Trademarks 4.1 Accounts payable (7.5 ) Accrued expenses (3.7 ) Other liabilities (0.2 ) Goodwill $ 5.6 |
Pro forma Financial Information | The Company’s unaudited pro forma revenue and net loss for the years ended December 31, 2015 and 2014 below have been prepared as if PEG had been purchased on January 1, 2014 (in millions). Unaudited Pro Forma 2015 2014 Revenue $ 1,861.5 $ 2,204.4 Net loss $ (48.3 ) $ (32.4 ) |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GOODWILL AND INTANGIBLES [Abstract] | |
Schedule of Carrying Value of Goodwill | The following table provides information related to the carrying value of goodwill (in millions): December 31, December 31, 2015 2014 Balance, January 1 $ 3.9 $ 2.4 Additions associated with acquisition 5.6 1.5 Foreign currency translation (0.3 ) - Balance, December 31 $ 9.2 $ 3.9 |
Schedule of Indefinite-Lived Intangible Assets | The December 31, December 31, 2015 2014 Balance January 1 $ 2.3 $ 2.3 Additions associated with acquisition 4.1 - Balance December 31 $ 6.4 $ 2.3 |
Schedule of Definite-Lived Intangible Assets | The following table summarizes information related to definite-lived intangible assets (in millions): December 31, December 31, 2015 2014 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Weighted avg useful life Gross Carrying Amount Accumulated Amortization Weighted avg useful life Client lists 5-10 yrs $ 5.5 $ 3.0 8.3 $ 3.6 $ 2.6 7.3 Leases 3-6 yrs 0.8 0.1 4.7 - - - Trademark 1 yr 0.2 0.2 - 0.2 - - Total $ 6.5 $ 3.3 7.3 $ 3.8 $ 2.6 7.3 |
Schedule of Aggregate Amortization Expense for Intangibles | The aggregate amortization expense for these intangibles was approximately $0.7 million in 2015. The estimated amortization for future years ending December 31 is as follows (in millions): 2016 $ 0.5 2017 0.5 2018 0.4 2019 and after 1.8 Total $ 3.2 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net consist of the following (in millions): December 31, 2015 2014 Land and buildings $ 17.7 $ 18.6 Furniture and fixtures, office, computer and other equipment and software 108.7 127.6 Leasehold improvements 21.8 26.8 148.2 173.0 Less accumulated depreciation and amortization 109.9 131.8 Property, plant and equipment, net $ 38.3 $ 41.2 |
Property, Plant and Equipment, Assets Under Capital Leases | Included in property, plant and equipment are assets under capital leases, as follows (in thousands): 2015 2014 Office, computer and other equipment $ 17.5 $ 17.7 Less: Accumulated amortization 16.3 14.6 $ 1.2 $ 3.1 |
ACCRUED EXPENSES AND OTHER CU29
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in millions): December 31, 2015 2014 Payroll and employee benefits $ 31.0 $ 34.6 Advertising 7.6 11.9 Sales and VAT tax payable 5.1 9.3 Freight 5.6 8.0 Reorganization costs 6.3 4.7 Deferred revenue 5.4 5.1 Other 18.0 21.8 $ 79.0 $ 95.4 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LONG-TERM DEBT [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of (in millions): December 31, 2015 2014 Warehouse capitalized equipment lease $ - $ 2.2 Other capitalized equipment lease 1.0 1.7 Subtotal 1.0 3.9 Less: current portion 0.6 2.8 $ 0.4 $ 1.1 |
Schedule of Maturities of Long-Term Debt Outstanding | The aggregate maturities of long-term debt outstanding at December 31, 2015 are as follows (in millions): 2016 2017 2018 Maturities $ 0.6 $ 0.3 $ 0.1 |
SPECIAL CHARGES, NET (Tables)
SPECIAL CHARGES, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SPECIAL CHARGES, NET [Abstract] | |
Special Charge Liabilities | The following table details the associated liabilities incurred related to the Technology Products segments special charges (in millions): EMEA- Workforce Reductions and Personnel Costs NATG- Workforce Reductions NATG- Other Exit Costs Total Balance, January 1, 2015 $ 4.7 - $ - $ 4.7 Charged to expense 0.4 5.5 33.0 38.9 Paid or otherwise settled (4.8 ) (2.8 ) (16.7 ) (24.3 ) Balance, December 31, 2015 $ 0.3 2.7 $ 16.3 $ 19.3 |
SHAREHOLDER'S EQUITY (Tables)
SHAREHOLDER'S EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHAREHOLDERS' EQUITY [Abstract] | |
Schedule of Weighted-Average Assumptions Used To Estimate the Fair Value of Options Granted | The following table presents the weighted-average assumptions used to estimate the fair value of options granted in 2015, 2014 and 2013: 2015 2014 2013 Expected annual dividend yield 0 % 0 % 0 % Risk-free interest rate 1.73 % 2.02 % 1.66 % Expected volatility 40.2 % 46.9 % 41.1 % Expected life in years 6.3 6.2 7.9 |
Schedule of Outstanding and Exercisable Options | The following table summarizes information concerning outstanding and exercisable options: Weighted Average 2015 2014 2013 Shares Exercise Price Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 1,127,250 $ 16.12 1,175,499 $ 16.11 1,353,059 $ 15.88 Granted 25,000 $ 10.62 90,000 $ 13.56 60,000 $ 9.54 Exercised (4,000 ) $ 6.30 (33,749 ) $ 9.78 (34,310 ) $ 3.04 Cancelled or expired (193,625 ) $ 16.29 (104,500 ) $ 15.83 (203,250 ) $ 14.84 Outstanding at end of year 954,625 $ 15.98 1,127,250 $ 16.12 1,175,499 $ 16.11 Options exercisable at year end 832,125 839,500 772,749 Weighted average fair value per option granted during the year $ 4.44 $ 6.46 $ 4.44 |
Schedule of Options Vested and Exercisable or Nonvested, Expected to Vest (Nonvested Outstanding Less Expected Forfeitures) | The following table summarizes information about options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) at December 31, 2015: Range of Exercise Prices Number Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in millions) $ 5.00 to $ 10.00 47,202 $ 9.51 7.46 $ - $ 10.01 to $ 15.00 390,950 $ 12.84 4.98 - $ 15.01 to $ 20.00 431,763 $ 18.22 3.93 - $ 20.01 to $ 20.15 100,000 $ 20.15 1.04 - $ 5.00 to $ 20.15 969,915 $ 15.83 4.22 $ - |
Schedule of Unvested Stock Options | The following table reflects the activity for all unvested stock options during 2015: Shares Weighted Average Grant- Date Fair Value Unvested at January 1, 2015 287,750 $ 8.21 Granted 25,000 $ 4.44 Vested (132,125 ) $ 8.67 Forfeited (58,125 ) $ 7.22 Unvested at December 31, 2015 122,500 $ 7.40 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
Components of Income (Loss) before Income Taxes | The components of income (loss) from continuing operations before income taxes are as follows (in millions): Year Ended December 31, 2015 2014 2013 United States $ (14.5 ) $ 1.9 $ (11.1 ) Foreign (20.3 ) (22.0 ) (1.3 ) Total $ (34.8 ) $ (20.1 ) $ (12.4 ) |
Schedule of (Benefit) Provision for Income Taxes | The (benefit) provision for income taxes from continuing operations consists of the following (in millions): Year Ended December 31, 2015 2014 2013 Current: Federal $ 3.1 $ 7.6 $ (0.3 ) State 0.6 0.4 0.4 Foreign 4.3 3.2 3.4 Total current 8.0 11.2 3.5 Deferred: Federal 0.1 - 20.5 State - (0.3 ) 5.3 Foreign 5.4 1.0 1.3 Total deferred 5.5 0.7 27.1 TOTAL $ 13.5 $ 11.9 $ 30.6 |
Reconciliation of Difference between Income Tax Expense and Computed Income Tax Expense Based on Federal Statutory Corporate Rate | A reconciliation of the difference between the income tax expense and the computed income tax expense based on the Federal statutory corporate rate is as follows (in millions): Year Ended December 31 2015 2014 2013 Income tax at Federal statutory rate $ (12.2 ) (35.0 )% $ (7.1 ) (35.0 )% $ (4.3 ) (35.0 )% Foreign taxes at rates different from the U.S. rate 7.7 22.2 5.2 25.9 2.2 18.1 State and local income taxes, net of federal tax benefit (1.4 ) (3.9 ) 1.6 8.2 0.5 3.9 Impact of state rate changes 0.7 1.9 - - - - Changes in valuation allowances 18.8 54.2 12.4 61.5 33.5 271.7 Change in deferred tax liability - - - - (1.2 ) (9.6 ) Non-deductible items 0.1 0.2 - - 0.1 0.3 Other items, net (0.2 ) (0.8 ) (0.2 ) (1.1 ) (0.2 ) (1.4 ) Income tax $ 13.5 38.8 % $ 11.9 59.5 % $ 30.6 248.0 % |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities are comprised of the following (in millions): December 31, 2015 2014 Assets: Accrued expenses and other liabilities $ 12.4 $ 9.0 Inventory 5.6 4.2 Depreciation 0.8 2.4 Intangible & other 13.0 13.4 Net operating loss and credit carryforwards 57.4 35.0 Valuation allowances (80.6 ) (48.8 ) Total non-current deferred tax assets 8.6 15.2 Liabilities : Non-current: Other $ 0.4 $ - Total non-current liabilities $ 0.4 $ - |
COMMITMENTS, CONTINGENCIES AN34
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] | |
Future Minimum Annual Lease Payments for Capital Leases and Related and Third-Party Operating Leases | At December 31, 2015, the future minimum annual lease payments for capital leases and related and third-party operating leases were as follows (in millions): Capital Leases Operating Leases Total 2016 0.6 $ 24.8 $ 25.4 2017 0.3 25.0 25.3 2018 0.1 22.1 22.2 2019 - 20.2 20.2 2020 - 16.3 16.3 2021-2025 - 44.2 44.2 2026-2030 - 22.5 22.5 Thereafter - 4.4 4.4 Total minimum lease payments 1.0 179.5 180.5 Less: sublease rental income - 9.2 9.2 Lease obligation net of subleases 1.0 $ 170.3 171.3 Less: amount representing interest 0.0 Present value of minimum capital lease payments (including current portion of $0.6) $ 1.0 |
SEGMENT AND RELATED INFORMATI35
SEGMENT AND RELATED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SEGMENT AND RELATED INFORMATION [Abstract] | |
Financial Information by Reportable Segment | Financial information relating to the Company’s continuing operations by reportable segment was as follows (in millions): Year Ended December 31, 2015 2014 2013 Net Sales: IPG $ 698.6 $ 556.0 $ 473.8 EMEA 1,052.9 1,189.9 1,095.4 NATG 97.8 352.4 401.0 Corporate and other 5.4 5.9 5.2 Consolidated $ 1,854.7 $ 2,104.2 $ 1,975.4 Depreciation and Amortization Expense: IPG $ 3.8 $ 2.1 $ 2.2 EMEA 3.9 4.0 2.9 NATG 0.6 4.1 7.0 Corporate and other 1.0 1.3 1.0 Consolidated $ 9.3 $ 11.5 $ 13.1 Operating Income (Loss): IPG $ 43.7 $ 41.0 $ 40.0 EMEA (10.8 ) (21.2 ) (4.2 ) NATG (38.2 ) (17.9 ) (26.6 ) Corporate and other expenses (18.8 ) (15.6 ) (20.0 ) Consolidated $ (24.1 ) $ (13.7 ) $ (10.8 ) Total Assets IPG $ 175.3 $ 135.5 $ 110.0 EMEA 238.3 313.3 331.5 NATG 26.6 187.6 266.6 Corporate and other 269.9 260.5 234.1 Consolidated $ 710.1 $ 896.9 $ 942.2 |
Financial Information by Geographic Area | Financial information relating to the Company’s operations by geographic area was as follows (in millions): Year Ended December 31, 2015 2014 2013 Net Sales: United States $ 676.8 $ 723.2 674.2 United Kingdom 335.7 471.9 468.5 France 382.6 383.2 335.4 Other Europe 334.5 334.8 291.5 Other North America 125.1 191.1 205.8 Consolidated $ 1,854.7 $ 2,104.2 1,975.4 Long-lived Assets: United States $ 18.1 $ 17.1 $ 32.3 United Kingdom 15.6 17.5 18.7 France 1.1 0.8 0.9 Other Europe and Asia 3.5 5.5 6.4 Other North America - 0.3 1.1 Consolidated $ 38.3 $ 41.2 $ 59.4 |
QUARTERLY FINANCIAL DATA (UNA36
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly financial data, excluding discontinued operations, is as follows (in millions, except for per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2015: Net sales $ 512.1 $ 454.1 $ 423.2 $ 465.3 Gross profit $ 86.5 $ 87.0 $ 82.3 $ 86.9 Net income (loss) $ (18.6 ) $ (19.9 ) $ 1.8 $ (11.6 ) Net loss per common share: Basic $ (0.50 ) $ (0.54 ) $ 0.05 $ (0.31 ) Diluted $ (0.50 ) $ (0.54 ) $ 0.05 $ (0.31 ) 2014: Net sales $ 541.2 $ 505.6 $ 505.4 $ 552.0 Gross profit $ 98.2 $ 93.3 $ 89.9 $ 95.8 Net loss $ (0.3 ) $ (7.5 ) $ (2.4 ) $ (21.8 ) Net loss per common share: Basic $ (0.01 ) $ (0.20 ) $ (0.06 ) $ (0.59 ) Diluted $ (0.01 ) $ (0.20 ) $ (0.06 ) $ (0.59 ) |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015Store | Dec. 31, 2015USD ($)SegmentStoreVendorshares | Dec. 31, 2014USD ($)Vendorshares | Dec. 31, 2013USD ($)Vendorshares | Dec. 01, 2015USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||
Number of reportable segments | Segment | 3 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of retail stores closed | Store | 31 | ||||
Evaluation of Long-lived Assets [Abstract] | |||||
Impairment charge on long-lived assets | $ 1.4 | ||||
Advertising Costs [Abstract] | |||||
Amortization period, minimum | 1 month | ||||
Amortization period, maximum | 4 months | ||||
Advertising expense | $ 74.4 | $ 68.1 | $ 60.1 | ||
Vendor consideration | $ 20.2 | $ 38.8 | $ 45.9 | ||
Net Income (Loss) Per Common Share [Abstract] | |||||
Stock options and Restricted stock awards securities excluded from computation of earnings (loss) per share (in shares) | shares | 1 | 0.8 | 1.3 | ||
Employee Benefit Plans [Abstract] | |||||
Minimum annual contribution per employee | 1.00% | ||||
Aggregate expense in contributions plans | $ 0.9 | $ 0.9 | $ 0.9 | ||
Fair Value Measurement [Abstract] | |||||
Weighted average interest rate on short-term borrowings | 4.30% | 4.30% | 4.30% | ||
Recent Accounting Pronouncements [Abstract] | |||||
Reclassification of net current deferred tax assets | $ 1.7 | ||||
Reclassification of noncurrent deferred tax liabilities | $ 1.9 | ||||
Concentration Risk [Line Items] | |||||
Number of vendor | Vendor | 2 | 2 | 1 | ||
NATG [Member] | |||||
Evaluation of Long-lived Assets [Abstract] | |||||
Impairment charge on long-lived assets | $ 10 | ||||
Advertising Costs [Abstract] | |||||
Advertising expense | $ 7.5 | 10.7 | $ 14.1 | ||
Vendor consideration | 12.1 | 24.9 | 28.3 | ||
Employee Benefit Plans [Abstract] | |||||
Aggregate expense in contributions plans | $ 0.4 | 0.5 | 0.5 | ||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 10 years | ||||
Buildings [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 30 years | ||||
Buildings [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 50 years | ||||
Internal-Use Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 3 years | ||||
NATG [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration received from disposal of business | $ 14 | ||||
Number of remaining stores | Store | 3 | ||||
Pretax losses on disposal | $ 39 | $ 17.9 | $ 26.8 | ||
Supplier Concentration Risk [Member] | Vendor One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 12.20% | 12.60% | 13.90% | ||
Supplier Concentration Risk [Member] | Vendor Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 10.90% | 11.60% |
DISPOSITION (Details)
DISPOSITION (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015Store | Dec. 31, 2015USD ($)Store | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 01, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of retail stores closed | Store | 31 | ||||
Reconciliation of Pretax Profit (Loss) of Discontinued Operations to After-Tax Profit or Loss of Discontinued Operations [Abstract] | |||||
Net loss from discontinued operations | $ (51.5) | $ (5.5) | $ (0.8) | ||
NATG [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration received from disposal of business | $ 14 | ||||
Number of remaining stores | Store | 3 | ||||
Reconciliation of Pretax Profit (Loss) of Discontinued Operations to After-Tax Profit or Loss of Discontinued Operations [Abstract] | |||||
Net sales | $ 1,053.4 | 1,338.6 | 1,376.9 | ||
Cost of sales | 997.1 | 1,222.6 | 1,254.7 | ||
Gross profit | 56.3 | 116 | 122.2 | ||
Selling, general and administrative expenses | 109.9 | 119.7 | 126 | ||
Special charges, net | 1.6 | 8.5 | 6 | ||
Foreign currency exchange (gain) loss | (0.5) | 0.1 | (0.4) | ||
Interest and other income, net | 0.1 | 0.2 | 0 | ||
Loss of discontinued operations before income taxes | (54.8) | (12.5) | (9.4) | ||
Benefit for income tax | (3.3) | (7) | (8.6) | ||
Net loss from discontinued operations | $ (51.5) | $ (5.5) | $ (0.8) |
ACQUISITIONS (Details)
ACQUISITIONS (Details) € in Millions, $ in Millions | Jan. 30, 2015USD ($) | Jun. 12, 2014USD ($) | Jun. 12, 2014EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 12, 2014EUR (€) | Dec. 31, 2013USD ($) |
Less [Abstract] | |||||||
Goodwill | $ 9.2 | $ 3.9 | $ 2.4 | ||||
Plant Equipment Group [Member] | |||||||
Business acquisition, purchase price allocation [Abstract] | |||||||
Purchase price | $ 25.9 | ||||||
Less [Abstract] | |||||||
Cash | 1.1 | ||||||
Accounts receivable | 10 | ||||||
Inventory | 11.8 | ||||||
Fixed assets | 1.2 | ||||||
Prepaid expenses | 0.6 | ||||||
Accounts payable | (7.5) | ||||||
Accrued expenses | (3.7) | ||||||
Other liabilities | (0.2) | ||||||
Goodwill | 5.6 | ||||||
Revenues | 89.1 | ||||||
Pretax income | 1.1 | ||||||
Business acquisition, pro forma information [Abstract] | |||||||
Revenue | 1,861.5 | 2,204.4 | |||||
Net loss | $ (48.3) | $ (32.4) | |||||
Escrow deposit to secure sellers' indemnification obligations | $ 1.9 | ||||||
Duration period of escrow deposit | 1 year | ||||||
Plant Equipment Group [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Business acquisition, pro forma information [Abstract] | |||||||
Acquisition transaction costs | $ 0.4 | ||||||
Plant Equipment Group [Member] | Leases, Net [Member] | |||||||
Less [Abstract] | |||||||
Intangible assets | 0.8 | ||||||
Plant Equipment Group [Member] | Client Lists [Member] | |||||||
Less [Abstract] | |||||||
Intangible assets | 2.1 | ||||||
Plant Equipment Group [Member] | Trademarks [Member] | |||||||
Less [Abstract] | |||||||
Intangible assets | $ 4.1 | ||||||
Misco Solutions B.V. [Member] | |||||||
Business acquisition, purchase price allocation [Abstract] | |||||||
Purchase price | $ 7.3 | € 5.4 | |||||
Less [Abstract] | |||||||
Goodwill | 1.5 | ||||||
Business acquisition, pro forma information [Abstract] | |||||||
Escrow deposit to secure sellers' indemnification obligations | $ 0.6 | € 0.4 | |||||
Duration period of escrow deposit | 1 year | 1 year | |||||
Misco Solutions B.V. [Member] | Client Lists [Member] | |||||||
Business acquisition, pro forma information [Abstract] | |||||||
Intangible assets acquired | $ 1 | ||||||
Misco Solutions B.V. [Member] | Trademarks [Member] | |||||||
Business acquisition, pro forma information [Abstract] | |||||||
Intangible assets acquired | $ 0.2 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 3.9 | $ 2.4 |
Additions associated with acquisition | 5.6 | 1.5 |
Foreign currency translation | (0.3) | 0 |
Balance at end of period | 9.2 | 3.9 |
Indefinite-lived intangible assets [Roll Forward] | ||
Beginning balance | 2.3 | 2.3 |
Additions associated with acquisition | 4.1 | 0 |
Ending balance | 6.4 | 2.3 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6.5 | 3.8 |
Accumulated Amortization | 3.3 | $ 2.6 |
Amortization expense | $ 0.7 | |
Weighted Average Useful Life | 7 years 3 months 18 days | 7 years 3 months 18 days |
Aggregate amortization expense for intangibles [Abstract] | ||
2,016 | $ 0.5 | |
2,017 | 0.5 | |
2,018 | 0.4 | |
2019 and after | 1.8 | |
Total | 3.2 | |
Client Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5.5 | $ 3.6 |
Accumulated Amortization | $ 3 | $ 2.6 |
Weighted Average Useful Life | 8 years 3 months 18 days | 7 years 3 months 18 days |
Client Lists [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Client Lists [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years | |
Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 0.8 | $ 0 |
Accumulated Amortization | $ 0.1 | $ 0 |
Weighted Average Useful Life | 4 years 8 months 12 days | 0 years |
Leases [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | |
Leases [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 6 years | |
Trademark [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 1 year | |
Gross Carrying Amount | $ 0.2 | $ 0.2 |
Accumulated Amortization | $ 0.2 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT41
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, plant and equipment, net [Abstract] | |||
Property, plant and equipment, Gross | $ 148.2 | $ 173 | |
Less accumulated depreciation and amortization | 109.9 | 131.8 | |
Property, plant and equipment, net | 38.3 | 41.2 | |
Included in property, plant and equipment are assets under capital leases [Abstract] | |||
Office, computer and other equipment | 17.5 | 17.7 | |
Less: Accumulated amortization | 16.3 | 14.6 | |
Property, plant and equipment, assets under capital leases, net | 1.2 | 3.1 | |
Depreciation | 11.1 | 15.4 | $ 17.4 |
NATG [Member] | |||
Included in property, plant and equipment are assets under capital leases [Abstract] | |||
Depreciation | 3.1 | 8.5 | $ 11.9 |
Land and Buildings [Member] | |||
Property, plant and equipment, net [Abstract] | |||
Property, plant and equipment, Gross | 17.7 | 18.6 | |
Furniture and Fixtures, Office, Computer and Other Equipment and Software [Member] | |||
Property, plant and equipment, net [Abstract] | |||
Property, plant and equipment, Gross | 108.7 | 127.6 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment, net [Abstract] | |||
Property, plant and equipment, Gross | $ 21.8 | $ 26.8 |
CREDIT FACILITIES (Details)
CREDIT FACILITIES (Details) - Systemax Inc. [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | |
Secured revolving credit agreement, maximum borrowing capacity | $ 125 |
Line of credit facility optional maximum borrowing capacity subject to conditions | $ 200 |
Credit facility, maturing date | Oct. 31, 2016 |
Percentage of eligible accounts receivable for borrowings, maximum | 85.00% |
Percentage of qualified inventories for borrowings, maximum | 40.00% |
Eligible collateral letters of credit | $ 37.9 |
Availability under line of credit | 33 |
Total outstanding letters of credit | 4.9 |
Outstanding advances | $ 0 |
ACCRUED EXPENSES AND OTHER CU43
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Payroll and employee benefits | $ 31 | $ 34.6 |
Advertising | 7.6 | 11.9 |
Sales and VAT tax payable | 5.1 | 9.3 |
Freight | 5.6 | 8 |
Reorganization costs | 6.3 | 4.7 |
Deferred revenue | 5.4 | 5.1 |
Other | 18 | 21.8 |
Accrued expenses and other current liabilities | $ 79 | $ 95.4 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
LONG-TERM DEBT [Abstract] | ||
Recovery zone facility bond, maturity date | Oct. 1, 2018 | |
Capital equipment lease maturity date | Oct. 1, 2018 | |
Additional amount to be paid over principal and interest to acquire ownership | $ 1 | |
Capitalized equipment lease obligation [Abstract] | ||
Capitalized lease obligations | 1,000,000 | $ 3,900,000 |
Less: current portion | 600,000 | 2,800,000 |
Long term debt | 400,000 | 1,100,000 |
Maturities of long-term debt outstanding [Abstract] | ||
2,016 | 600,000 | |
2,017 | 300,000 | |
2,018 | 100,000 | |
Warehouse Capitalized Equipment Lease [Member] | ||
Capitalized equipment lease obligation [Abstract] | ||
Capitalized lease obligations | 0 | 2,200,000 |
Other Capitalized Equipment Lease [Member] | ||
Capitalized equipment lease obligation [Abstract] | ||
Capitalized lease obligations | $ 1,000,000 | $ 1,700,000 |
SPECIAL CHARGES, NET (Details)
SPECIAL CHARGES, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 17, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges | $ 27.9 | $ 15.9 | $ 16.2 | |||
Asset impairment charges | 1.4 | 10.2 | $ 4.1 | |||
Technology Products [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance beginning of period | $ 19.3 | $ 4.7 | 4.7 | |||
Charged to expense | 38.9 | |||||
Paid or otherwise settled | (24.3) | |||||
Balance end of period | $ 19.3 | 19.3 | 4.7 | |||
EMEA Technology Products Group [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges | 0.7 | |||||
Asset impairment charges | 0.7 | |||||
EMEA Technology Products Group [Member] | Workforce Reductions and Other Exist Costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance beginning of period | 0.3 | 4.7 | 4.7 | |||
Charged to expense | 0.4 | |||||
Paid or otherwise settled | (4.8) | |||||
Balance end of period | 0.3 | 0.3 | 4.7 | |||
EMEA Technology Products Group [Member] | Workforce Reductions and Personnel Costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Benefits from adjustments | (0.1) | |||||
North America Technology Products Group [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges | 27.2 | |||||
Special charges in continuing operations | 25.6 | |||||
Special charges in discontinuing operations | 1.6 | |||||
Asset impairment charges, net | 0.1 | |||||
Sale of business | 14.1 | 14.1 | ||||
Lease termination costs | 29.9 | |||||
Recovery settlement | (1) | |||||
North America Technology Products Group [Member] | Minimum [Member] | Subsequent Event [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Additional charges | 15 | |||||
North America Technology Products Group [Member] | Maximum [Member] | Subsequent Event [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Additional charges | 25 | |||||
North America Technology Products Group [Member] | Workforce Reductions [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance beginning of period | 2.7 | 0 | 0 | |||
Charged to expense | 5.5 | |||||
Paid or otherwise settled | (2.8) | |||||
Balance end of period | 2.7 | 2.7 | 0 | |||
North America Technology Products Group [Member] | Legal and Professional Fees [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges | 2.5 | |||||
North America Technology Products Group [Member] | Consulting Expenses [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges | 3.3 | |||||
North America Technology Products Group [Member] | Workforce Reductions and Other Exist Costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges | 5.5 | |||||
North America Technology Products Group [Member] | Other Exit Costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance beginning of period | $ 16.3 | 0 | 0 | |||
Charged to expense | 33 | |||||
Paid or otherwise settled | (16.7) | |||||
Balance end of period | 16.3 | 16.3 | $ 0 | |||
Industrial Products Group [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges | $ 1 | |||||
Lease termination costs | $ 0.6 | |||||
Industrial Products Group [Member] | Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charges | $ 0.4 |
SHAREHOLDER'S EQUITY (Details)
SHAREHOLDER'S EQUITY (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2015Installmentshares | Nov. 30, 2011Installmentshares | Oct. 31, 2011Installmentshares | Aug. 31, 2010Installmentshares | Mar. 31, 2012Installmentshares | Dec. 31, 2015USD ($)Plan$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of compensation plans | Plan | 4 | |||||||
Share based compensation cost | $ | $ 1.2 | $ 1.5 | $ 2.9 | |||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation cost | $ | 0.2 | 0.7 | 1.1 | |||||
Share based compensation cost, future income tax benefits | $ | $ 0.1 | $ 0.2 | $ 0.4 | |||||
Weighted-average assumptions used to estimate the fair value of options granted [Abstract] | ||||||||
Expected annual dividend yield | 0.00% | 0.00% | 0.00% | |||||
Risk-free interest rate | 1.73% | 2.02% | 1.66% | |||||
Expected volatility | 40.20% | 46.90% | 41.10% | |||||
Expected life in years | 6 years 3 months 18 days | 6 years 2 months 12 days | 7 years 10 months 24 days | |||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||
Outstanding at beginning of year (in shares) | 1,127,250 | 1,175,499 | 1,353,059 | |||||
Granted (in shares) | 25,000 | 90,000 | 60,000 | |||||
Exercised (in shares) | (4,000) | (33,749) | (34,310) | |||||
Cancelled or expired (in shares) | (193,625) | (104,500) | (203,250) | |||||
Outstanding at end of year (in shares) | 954,625 | 1,127,250 | 1,175,499 | |||||
Options exercisable at year end (in shares) | 832,125 | 839,500 | 772,749 | |||||
Weighted average fair value per option granted during the year (in dollars per share) | $ / shares | $ 4.44 | $ 6.46 | $ 4.44 | |||||
Outstanding and exercisable options, Weighted Average Exercise Price [Roll Forward] | ||||||||
Outstanding at beginning of year (in dollars per share) | $ / shares | 16.12 | 16.11 | 15.88 | |||||
Granted (in dollars per share) | $ / shares | 10.62 | 13.56 | 9.54 | |||||
Exercised (in dollars per share) | $ / shares | 6.30 | 9.78 | 3.04 | |||||
Cancelled or expired (in dollars per share) | $ / shares | 16.29 | 15.83 | 14.84 | |||||
Outstanding at end of year (in dollars per share) | $ / shares | $ 15.98 | $ 16.12 | $ 16.11 | |||||
Weighted average grant date fair value [Roll Forward] | ||||||||
Total intrinsic value of options exercised | $ | $ 0.2 | $ 0.2 | ||||||
Unrecognized compensation costs | $ | $ 0.2 | |||||||
Weighted average period of recognition | 1 year 5 months 23 days | |||||||
Total fair value of stock options vested | $ | $ 1.1 | 1.2 | 1.6 | |||||
Stock Options [Member] | North American Technology Products Segment [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation cost | $ | 0.2 | |||||||
Restricted Stock Units [Member] | Key Employee [Member] | Granted October 2011 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation cost | $ | 0 | 0 | 0.8 | |||||
Restricted Stock Units [Member] | Key Employee [Member] | Granted November 2011 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation cost | $ | 0.2 | 0.2 | 0.2 | |||||
Restricted Stock Units [Member] | Key Employee [Member] | Granted July 2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation cost | $ | 0.1 | |||||||
Restricted Stock Units [Member] | Two Key Employees [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation cost | $ | 0.4 | 0.3 | 0.4 | |||||
Restricted Stock Units [Member] | Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation cost | $ | $ 0.1 | $ 0.1 | 0.1 | |||||
Unvested Stock Options [Member] | ||||||||
Activity for all unvested stock options [Roll Forward] | ||||||||
Unvested at beginning of the year (in shares) | 287,750 | |||||||
Granted (in shares) | 25,000 | |||||||
Vested (in shares) | (132,125) | |||||||
Forfeited (in shares) | (58,125) | |||||||
Unvested at end of the year (in shares) | 122,500 | 287,750 | ||||||
Weighted average grant date fair value [Roll Forward] | ||||||||
Unvested at the beginning of the year (in dollars per share) | $ / shares | $ 8.21 | |||||||
Granted (in dollars per share) | $ / shares | 4.44 | |||||||
Vested (in dollars per share) | $ / shares | 8.67 | |||||||
Forfeited (in dollars per share) | $ / shares | 7.22 | |||||||
Unvested at the end of the year (in dollars per share) | $ / shares | $ 7.40 | $ 8.21 | ||||||
1995 Stock Option Plan for Non-Employee Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Term of award | 10 years | |||||||
Number of shares authorized for issuance (in shares) | 100,000 | |||||||
1995 Stock Option Plan for Non-Employee Directors [Member] | Stock Options [Member] | ||||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||
Outstanding at end of year (in shares) | 0 | |||||||
1999 Long-term Stock Incentive Plan, as amended [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for issuance (in shares) | 7,500,000 | |||||||
Number of shares granted per employee in each calendar year, maximum (in shares) | 3,000,000 | |||||||
1999 Long-term Stock Incentive Plan, as amended [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares granted per employee in each calendar year, maximum (in shares) | 1,500,000 | |||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||
Outstanding at end of year (in shares) | 492,750 | |||||||
2006 Stock Incentive Plan For Non-Employee Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for issuance (in shares) | 200,000 | |||||||
2006 Stock Incentive Plan For Non-Employee Directors [Member] | Stock Options [Member] | ||||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||
Outstanding at end of year (in shares) | 15,000 | |||||||
2010 Long-term Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for issuance (in shares) | 7,500,000 | |||||||
2010 Long-term Stock Incentive Plan [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares granted per employee in each calendar year, maximum (in shares) | 1,500,000 | |||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||
Outstanding at end of year (in shares) | 446,875 | |||||||
2010 Long-term Stock Incentive Plan [Member] | Restricted Stock Units [Member] | ||||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||
Outstanding at end of year (in shares) | 206,120 | |||||||
2010 Long-term Stock Incentive Plan [Member] | Restricted Stock Units [Member] | Key Employee [Member] | ||||||||
Activity for all unvested stock options [Roll Forward] | ||||||||
Granted (in shares) | 23,620 | 100,000 | 100,000 | |||||
Vested (in shares) | (90,000) | |||||||
Restricted Stock and Restricted Stock Units [Abstract] | ||||||||
Number of vesting installments | Installment | 4 | 10 | 10 | |||||
Number of units vesting annually (in shares) | 5,905 | 10,000 | 10,000 | |||||
2010 Long-term Stock Incentive Plan [Member] | Restricted Stock Units [Member] | Key Employee [Member] | Granted August 2010 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation cost | $ | $ 0.2 | $ 0.2 | $ 0.3 | |||||
Activity for all unvested stock options [Roll Forward] | ||||||||
Granted (in shares) | 175,000 | |||||||
Restricted Stock and Restricted Stock Units [Abstract] | ||||||||
Number of vesting installments | Installment | 10 | |||||||
Number of units vesting annually (in shares) | 17,500 | |||||||
2010 Long-term Stock Incentive Plan [Member] | Restricted Stock Units [Member] | Two Key Employees [Member] | ||||||||
Activity for all unvested stock options [Roll Forward] | ||||||||
Granted (in shares) | 50,000 | |||||||
Vested (in shares) | (35,000) | |||||||
Restricted Stock and Restricted Stock Units [Abstract] | ||||||||
Number of vesting installments | Installment | 10 | |||||||
Number of units vesting annually (in shares) | 10,000 | |||||||
5.00 to 10.00 [Member] | ||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $ / shares | $ 5 | |||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ / shares | $ 10 | |||||||
Number Exercisable (in shares) | 47,202 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 9.51 | |||||||
Weighted Average Remaining Contractual Life | 7 years 5 months 16 days | |||||||
Aggregate Intrinsic Value | $ | $ 0 | |||||||
10.01 to 15.00 [Member] | ||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $ / shares | $ 10.01 | |||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ / shares | $ 15 | |||||||
Number Exercisable (in shares) | 390,950 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 12.84 | |||||||
Weighted Average Remaining Contractual Life | 4 years 11 months 23 days | |||||||
Aggregate Intrinsic Value | $ | $ 0 | |||||||
15.01 to 20.00 [Member] | ||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $ / shares | $ 15.01 | |||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ / shares | $ 20 | |||||||
Number Exercisable (in shares) | 431,763 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 18.22 | |||||||
Weighted Average Remaining Contractual Life | 3 years 11 months 5 days | |||||||
Aggregate Intrinsic Value | $ | $ 0 | |||||||
20.01 to 20.15 [Member] | ||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $ / shares | $ 20.01 | |||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ / shares | $ 20.15 | |||||||
Number Exercisable (in shares) | 100,000 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 20.15 | |||||||
Weighted Average Remaining Contractual Life | 1 year 14 days | |||||||
Aggregate Intrinsic Value | $ | $ 0 | |||||||
5.00 to 20.15 [Member] | ||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $ / shares | $ 5 | |||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ / shares | $ 20.15 | |||||||
Number Exercisable (in shares) | 969,915 | |||||||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 15.83 | |||||||
Weighted Average Remaining Contractual Life | 4 years 2 months 19 days | |||||||
Aggregate Intrinsic Value | $ | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of income (loss) before income taxes [Abstract] | |||
United States | $ (14.5) | $ 1.9 | $ (11.1) |
Foreign | (20.3) | (22) | (1.3) |
Loss from continuing operations before income taxes | (34.8) | (20.1) | (12.4) |
Current [Abstract] | |||
Federal | 3.1 | 7.6 | (0.3) |
State | 0.6 | 0.4 | 0.4 |
Foreign | 4.3 | 3.2 | 3.4 |
Total current | 8 | 11.2 | 3.5 |
Deferred [Abstract] | |||
Federal | 0.1 | 0 | 20.5 |
State | 0 | (0.3) | 5.3 |
Foreign | 5.4 | 1 | 1.3 |
Total deferred | 5.5 | 0.7 | 27.1 |
TOTAL | 13.5 | 11.9 | 30.6 |
Tax benefit from discontinued operations | (3.3) | (7) | (8.6) |
Reconciliation of the difference between income tax expense and computed income tax expense based on Federal statutory corporate rate [Abstract] | |||
Income tax at Federal statutory rate | (12.2) | (7.1) | (4.3) |
Foreign taxes at rates different from the U.S. rate | 7.7 | 5.2 | 2.2 |
State and local income taxes, net of federal tax benefit | (1.4) | 1.6 | 0.5 |
Impact of state rate changes | 0.7 | 0 | 0 |
Changes in valuation allowances | 18.8 | 12.4 | 33.5 |
Change in deferred tax liability | 0 | 0 | (1.2) |
Non-deductible items | 0.1 | 0 | 0.1 |
Other items, net | (0.2) | (0.2) | (0.2) |
TOTAL | $ 13.5 | $ 11.9 | $ 30.6 |
Reconciliation of the difference between income tax expense and computed income tax expense based on Federal statutory corporate rate, Tax Rate [Abstract] | |||
Income tax at Federal statutory rate | (35.00%) | (35.00%) | (35.00%) |
Foreign taxes at rates different from the U.S. rate | 22.20% | 25.90% | 18.10% |
State and local income taxes, net of federal tax benefit | (3.90%) | 8.20% | 3.90% |
Impact of state rate changes | 1.90% | 0.00% | 0.00% |
Changes in valuation allowances | 54.20% | 61.50% | 271.70% |
Change in deferred tax liability | 0.00% | 0.00% | (9.60%) |
Non-deductible items | 0.20% | 0.00% | 0.30% |
Other items, net | (0.80%) | (1.10%) | (1.40%) |
Income tax | 38.80% | 59.50% | 248.00% |
Assets [Abstract] | |||
Accrued expenses and other liabilities | $ 12.4 | $ 9 | |
Inventory | 5.6 | 4.2 | |
Depreciation | 0.8 | 2.4 | |
Intangible & other | 13 | 13.4 | |
Net operating loss and credit carryforwards | 57.4 | 35 | |
Valuation allowances | (80.6) | (48.8) | |
Total non-current deferred tax assets | 8.6 | 15.2 | |
Non-current [Abstract] | |||
Other | 0.4 | 0 | |
Total non-current liabilities | 0.4 | 0 | |
Valuation Allowance [Abstract] | |||
Valuation allowance recorded | 18.8 | ||
Undistributed earnings of its foreign subsidiaries | 50 | ||
Tax Credit Carryforward [Line Items] | |||
Uncertain tax positions | 0 | ||
Unrecognized tax benefits, accrued interest and penalties | 0 | $ 0 | |
U.S. Federal Deferred Tax Assets [Member] | |||
Valuation Allowance [Abstract] | |||
Valuation allowance recorded | 8.7 | ||
Foreign Deferred Tax Assets [Member] | |||
Valuation Allowance [Abstract] | |||
Valuation allowance recorded | 9 | ||
State Deferred Tax Assets [Member] | |||
Valuation Allowance [Abstract] | |||
Valuation allowance recorded | 1.1 | ||
Foreign [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward, valuation allowance | 1.6 | ||
Federal [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards amount | $ 1.6 | ||
Tax credit carryforward, expiration date | Dec. 31, 2025 | ||
Foreign [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Net operating loss carryforwards | $ 108.1 | ||
Net operating loss carryforwards, expiration year | Dec. 31, 2031 | ||
Net operating loss carryforwards, valuation allowance | $ 25.6 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Net operating loss carryforwards | $ 53.6 | ||
Net operating loss carryforwards, expiration year | Dec. 31, 2035 | ||
Net operating loss carryforwards, valuation allowance | $ 43.6 | ||
State [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Net operating loss carryforwards, valuation allowance | $ 9.8 | ||
State and Foreign [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Net operating loss carryforwards, expiration year | Dec. 31, 2035 |
COMMITMENTS, CONTINGENCIES AN48
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Details) $ in Millions | Mar. 01, 2016USD ($) | Mar. 03, 2015 | Dec. 31, 2015USD ($)OfficersState | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Loss Contingencies [Line Items] | |||||
Number of principal shareholders and senior executive officers | Officers | 3 | ||||
Capital Leases [Abstract] | |||||
2,016 | $ 0.6 | ||||
2,017 | 0.3 | ||||
2,018 | 0.1 | ||||
2,019 | 0 | ||||
2,020 | 0 | ||||
2021-2025 | 0 | ||||
2026-2030 | 0 | ||||
Thereafter | 0 | ||||
Total minimum lease payments | 1 | ||||
Less: sublease rental income | 0 | ||||
Lease obligation net of subleases | 1 | ||||
Less amount representing interest | 0 | ||||
Present value of minimum capital lease payments (including current portion of $0.6) | 1 | ||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||
2,016 | 24.8 | ||||
2,017 | 25 | ||||
2,018 | 22.1 | ||||
2,019 | 20.2 | ||||
2,020 | 16.3 | ||||
2021-2025 | 44.2 | ||||
2026-2030 | 22.5 | ||||
Thereafter | 4.4 | ||||
Total minimum lease payments | 179.5 | ||||
Less: sublease rental income | 9.2 | ||||
Lease obligation net of subleases | 170.3 | ||||
Total lease [Abstract] | |||||
2,016 | 25.4 | ||||
2,017 | 25.3 | ||||
2,018 | 22.2 | ||||
2,019 | 20.2 | ||||
2,020 | 16.3 | ||||
2021-2025 | 44.2 | ||||
2026-2030 | 22.5 | ||||
Thereafter | 4.4 | ||||
Total minimum lease payments | 180.5 | ||||
Less: sublease rental income | 9.2 | ||||
Lease obligation net of subleases | 171.3 | ||||
Annual rent expense | 26.4 | $ 31.5 | $ 34.6 | ||
Related party rent expense | 1 | 0.9 | 0.9 | ||
Rent expense net of sublease income | $ 0.1 | 0 | 0.1 | ||
Number of states seeking recovery of unclaimed property | State | 45 | ||||
Duration of sentence given to Gilbert Fiorentino based on whistleblower report | 60 months | ||||
Duration of sentence given to Carl Fiorentino based on whistleblower report | 80 months | ||||
Subsequent Event [Member] | |||||
Total lease [Abstract] | |||||
Restitution amount | $ 36 | ||||
North America Technology Products Group [Member] | |||||
Total lease [Abstract] | |||||
Annual rent expense | $ 10.7 | $ 18.3 | $ 20.6 |
SEGMENT AND RELATED INFORMATI49
SEGMENT AND RELATED INFORMATION, by Reportable Segments (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
SEGMENT AND RELATED INFORMATION [Abstract] | |||||||||||
Number of reportable segments | Segment | 3 | ||||||||||
Net sales [Abstract] | |||||||||||
Net sales | $ 465.3 | $ 423.2 | $ 454.1 | $ 512.1 | $ 552 | $ 505.4 | $ 505.6 | $ 541.2 | $ 1,854.7 | $ 2,104.2 | $ 1,975.4 |
Depreciation and Amortization Expense [Abstract] | |||||||||||
Depreciation and Amortization Expense | 9.3 | 11.5 | 13.1 | ||||||||
Operating Income (Loss) [Abstract] | |||||||||||
Operating Income (Loss) | (24.1) | (13.7) | (10.8) | ||||||||
Total Assets [Abstract] | |||||||||||
Total Assets | 710.1 | 896.9 | 710.1 | 896.9 | 942.2 | ||||||
Reportable Segments [Member] | Industrial Products Group [Member] | |||||||||||
Net sales [Abstract] | |||||||||||
Net sales | 698.6 | 556 | 473.8 | ||||||||
Depreciation and Amortization Expense [Abstract] | |||||||||||
Depreciation and Amortization Expense | 3.8 | 2.1 | 2.2 | ||||||||
Operating Income (Loss) [Abstract] | |||||||||||
Operating Income (Loss) | 43.7 | 41 | 40 | ||||||||
Total Assets [Abstract] | |||||||||||
Total Assets | 175.3 | 135.5 | 175.3 | 135.5 | 110 | ||||||
Reportable Segments [Member] | EMEA Technology Products Group [Member] | |||||||||||
Net sales [Abstract] | |||||||||||
Net sales | 1,052.9 | 1,189.9 | 1,095.4 | ||||||||
Depreciation and Amortization Expense [Abstract] | |||||||||||
Depreciation and Amortization Expense | 3.9 | 4 | 2.9 | ||||||||
Operating Income (Loss) [Abstract] | |||||||||||
Operating Income (Loss) | (10.8) | (21.2) | (4.2) | ||||||||
Total Assets [Abstract] | |||||||||||
Total Assets | 238.3 | 313.3 | 238.3 | 313.3 | 331.5 | ||||||
Reportable Segments [Member] | North America Technology Products Group [Member] | |||||||||||
Net sales [Abstract] | |||||||||||
Net sales | 97.8 | 352.4 | 401 | ||||||||
Depreciation and Amortization Expense [Abstract] | |||||||||||
Depreciation and Amortization Expense | 0.6 | 4.1 | 7 | ||||||||
Operating Income (Loss) [Abstract] | |||||||||||
Operating Income (Loss) | (38.2) | (17.9) | (26.6) | ||||||||
Total Assets [Abstract] | |||||||||||
Total Assets | 26.6 | 187.6 | 26.6 | 187.6 | 266.6 | ||||||
Corporate and Other [Member] | |||||||||||
Net sales [Abstract] | |||||||||||
Net sales | 5.4 | 5.9 | 5.2 | ||||||||
Depreciation and Amortization Expense [Abstract] | |||||||||||
Depreciation and Amortization Expense | 1 | 1.3 | 1 | ||||||||
Operating Income (Loss) [Abstract] | |||||||||||
Operating Income (Loss) | (18.8) | (15.6) | (20) | ||||||||
Total Assets [Abstract] | |||||||||||
Total Assets | $ 269.9 | $ 260.5 | $ 269.9 | $ 260.5 | $ 234.1 |
SEGMENT AND RELATED INFORMATI50
SEGMENT AND RELATED INFORMATION, by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 465.3 | $ 423.2 | $ 454.1 | $ 512.1 | $ 552 | $ 505.4 | $ 505.6 | $ 541.2 | $ 1,854.7 | $ 2,104.2 | $ 1,975.4 |
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 38.3 | 41.2 | 38.3 | 41.2 | 59.4 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 676.8 | 723.2 | 674.2 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 18.1 | 17.1 | 18.1 | 17.1 | 32.3 | ||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 335.7 | 471.9 | 468.5 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 15.6 | 17.5 | 15.6 | 17.5 | 18.7 | ||||||
France [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 382.6 | 383.2 | 335.4 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 1.1 | 0.8 | 1.1 | 0.8 | 0.9 | ||||||
Other Europe and Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 334.5 | 334.8 | 291.5 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 3.5 | 5.5 | 3.5 | 5.5 | 6.4 | ||||||
Other North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 125.1 | 191.1 | 205.8 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | $ 0 | $ 0.3 | $ 0 | $ 0.3 | $ 1.1 |
QUARTERLY FINANCIAL DATA (UNA51
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |||||||||||
Net sales | $ 465.3 | $ 423.2 | $ 454.1 | $ 512.1 | $ 552 | $ 505.4 | $ 505.6 | $ 541.2 | $ 1,854.7 | $ 2,104.2 | $ 1,975.4 |
Gross profit | 86.9 | 82.3 | 87 | 86.5 | 95.8 | 89.9 | 93.3 | 98.2 | 342.7 | 377.2 | 360.7 |
Net income (loss) | $ (11.6) | $ 1.8 | $ (19.9) | $ (18.6) | $ (21.8) | $ (2.4) | $ (7.5) | $ (0.3) | $ (99.8) | $ (37.5) | $ (43.8) |
Net loss per common share [Abstract] | |||||||||||
Basic (in dollars per share) | $ (0.31) | $ 0.05 | $ (0.54) | $ (0.50) | $ (0.59) | $ (0.06) | $ (0.20) | $ (0.01) | |||
Diluted (in dollars per share) | $ (0.31) | $ 0.05 | $ (0.54) | $ (0.50) | $ (0.59) | $ (0.06) | $ (0.20) | $ (0.01) |
SUBSEQUENT EVENTS (UNAUDITED) (
SUBSEQUENT EVENTS (UNAUDITED) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2016USD ($) | Mar. 17, 2016Employee | Jun. 30, 2015Store | Mar. 17, 2016Store | |
Subsequent Event [Line Items] | ||||
Number of retail stores closed | 31 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of retail stores closed | 2 | |||
Number of remaining employees | Employee | 30 | |||
Subsequent Event [Member] | Consumer Customer Lists [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash paid for acquisition | $ | $ 0.4 |
SCHEDULE II VALUATION AND QUA53
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Allowance for Doubtful Accounts [Member] | ||||||
Allowance for sales returns and doubtful accounts [Roll Forward] | ||||||
Balance at Beginning of Period | $ 6.5 | $ 5.8 | $ 6.3 | |||
Charged to Expenses | 7.9 | 8.9 | 4 | |||
Write-offs | (4.8) | (8.3) | (4.5) | |||
Other | 0.2 | [1] | 0.1 | [2] | 0 | |
Balance at End of Period | 9.8 | 6.5 | 5.8 | |||
Allowance for Sales Returns [Member] | ||||||
Allowance for sales returns and doubtful accounts [Roll Forward] | ||||||
Balance at Beginning of Period | 9.3 | 10.9 | 9.2 | |||
Charged to Expenses | 5.9 | 9.3 | 10.9 | |||
Write-offs | 0 | 0 | 0 | |||
Other | [3] | (9.3) | (10.9) | (9.2) | ||
Balance at End of Period | 5.9 | 9.3 | 10.9 | |||
Allowance for Inventory Returns [Member] | ||||||
Allowance for sales returns and doubtful accounts [Roll Forward] | ||||||
Balance at Beginning of Period | (7.8) | (9.2) | (8) | |||
Charged to Expenses | (4.9) | (7.8) | (9.2) | |||
Write-offs | 0 | 0 | 0 | |||
Other | [3] | 7.8 | 9.2 | 8 | ||
Balance at End of Period | (4.9) | (7.8) | (9.2) | |||
Allowance for Deferred Tax Assets, Noncurrent [Member] | ||||||
Allowance for sales returns and doubtful accounts [Roll Forward] | ||||||
Balance at Beginning of Period | 48.8 | 39.7 | 11.1 | |||
Charged to Expenses | 35.8 | 9.1 | 28.6 | |||
Write-offs | 0 | 0 | 0 | |||
Other | (4) | 0 | 0 | |||
Balance at End of Period | $ 80.6 | $ 48.8 | $ 39.7 | |||
[1] | Other relates to P.E.G acquisition allowance for doubtful accounts as of acquisition date. | |||||
[2] | Other relates to Misco Solutions (f/k/a SCC Services B.V.) acquisition allowance for doubtful accounts as of acquisition date. | |||||
[3] | Amounts represent gross revenue and cost reversals to the estimated sales returns and allowances accounts. |