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Property, Plant and Equipment Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Components of property, plant and equipment

Components of property, plant and equipment were as follows:



	(Dollars in thousands)
	December 31,
	2019			2018
Land	$	2,625		$	2,565
Buildings and improvements	15,356			16,858
Machinery and equipment	24,509			23,955
Capitalized software	22,136			21,738
Furniture and fixtures	5,673			5,884
Vehicles	155			190
McCook facility	—			12,961
Capital leases	—			684
Construction in progress	683			391
	71,137			85,226
Accumulated depreciation and amortization	(54,591		)	(61,678		)
	$	16,546		$	23,548

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 5,495	$ 11,883
Restricted cash	802	800
Accounts receivable, less allowance for doubtful accounts of $593 and $549, respectively	38,843	37,682
Inventories	55,905	52,887
Miscellaneous receivables and prepaid expenses	5,377	3,653
Total current assets	106,422	106,905
Property, plant and equipment, less accumulated depreciation and amortization	16,546	23,548
Deferred income taxes	21,711	20,592
Goodwill	20,923	20,079
Cash value of life insurance	14,969	12,599
Intangible assets, net	12,335	13,112
Right of use assets	11,246	0
Other assets	277	307
Total assets	204,429	197,142
Current liabilities:
Revolving line of credit	0	10,823
Accounts payable	13,789	15,207
Lease obligation	3,830	0
Accrued expenses and other liabilities	39,311	40,179
Total current liabilities	56,930	66,209
Revolving line of credit	2,271	0
Security bonus plan	11,840	12,413
Lease obligation	9,504	5,213
Deferred compensation	6,370	5,304
Deferred tax liability	6,188	2,761
Deferred rent liability	0	1,963
Other liabilities	3,325	4,106
Total liabilities	96,428	97,969
Stockholders' equity:
Authorized - 500,000 shares, Issued and outstanding - None	0	0
Authorized - 35,000,000 shares Issued – 9,190,171 and 9,005,716 shares, respectively Outstanding – 9,043,771 and 8,955,930 shares, respectively	9,190	9,006
Capital in excess of par value	18,077	15,623
Retained earnings	86,496	77,338
Treasury stock – 146,400 and 49,786 shares held, respectively	(5,761)	(1,234)
Accumulated other comprehensive income	(1)	(1,560)
Total stockholders’ equity	108,001	99,173
Total liabilities and stockholders’ equity	$ 204,429	$ 197,142

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock, $1 par value	Capital in Excess of Par Value	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Common Stock, Shares, Outstanding	8,888,028
Balance at beginning of year at Dec. 31, 2017	$ 93,490	$ 8,921	$ 13,005	$ 71,453	$ (711)	$ 822
Net income	6,214
Adjustment for foreign currency translation	(2,382)					(2,382)
Stock-based compensation	2,703		2,703
Shares issued	0	85	(85)
Treasury share repurchased	(523)				(523)
Balance at end of year at Dec. 31, 2018	$ 99,173	9,006	15,623	77,338	(1,234)	(1,560)
Shares Issued	84,414
Treasury Stock, Shares, Acquired	(16,512)
Common Stock, Shares, Outstanding	8,955,930
Net income	$ 7,221
Adjustment for foreign currency translation	1,559					1,559
Stock-based compensation	2,638		2,638
Shares issued	0	184	(184)
Treasury share repurchased	(4,527)				(4,527)
Balance at end of year at Dec. 31, 2019	$ 108,001	$ 9,190	$ 18,077	$ 86,496	$ (5,761)	$ (1)
Shares Issued	184,455
Treasury Stock, Shares, Acquired	(96,614)
Common Stock, Shares, Outstanding	9,043,771

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Revenue Recognition Impact of ASC 606 on Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Product and Service [Domain]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Service cost	$ 155,304	$ 145,493

Credit Agreement Narrative (Details) $ in Thousands	9 Months Ended	12 Months Ended
Credit Agreement Narrative (Details) $ in Thousands	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Line of Credit Facility [Line Items]
Bank Overdrafts	$ 5,500
Secured Debt, Current		$ 0	$ 10,823
Credit Facility (Textual) [Abstract]
Interest Paid, Including Capitalized Interest, Operating and Investing Activities		$ 590	$ 1,036
Weighted average interest rate		4.59%
Letters of Credit Outstanding, Amount		$ 1,100
Maximum
Credit Facility (Textual) [Abstract]
Restricted Dividends	7,000
Revolving Credit Facility [Member]
Credit Facility (Textual) [Abstract]
Credit facility, borrowing capacity	$ 40,000	100,000
Letter of Credit [Member]
Credit Facility (Textual) [Abstract]
Credit facility, borrowing capacity		150,000
Lawson [Member]
Line of Credit Facility [Line Items]
Secured Debt, Current		2,271
Credit Facility (Textual) [Abstract]
Credit Facility, remaining borrowing capacity		$ 96,700
Required Minimum Value [Member]
Line of Credit Facility [Line Items]
Minimum Net Leverage Ratio		3.25
Required Minimum Value [Member] \| Minimum
Line of Credit Facility [Line Items]
Minimum Net Leverage Ratio		1.00	1.00
Minimum
Line of Credit Facility [Line Items]
Minimum Net Leverage Ratio		3.75

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Principles of Consolidation — The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts and transactions of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications have no effect on net income as previously reported. Revenue Recognition — The Company recognizes two revenue streams: revenues from the sale of product and revenues from the performance of VMI services. The Company offers VMI services only in conjunction with product sales. The Company does not bill product sales and services separately. The total revenue billed is allocated between revenue from product sales and revenue from services for reporting purposes based upon the estimated selling price of such products and services. A portion of selling expenses is allocated to cost of sales for reporting purposes based upon the estimated time spent on such services. Product revenue includes product sales and billings for freight and handling charges. Sales and associated cost of goods sold are generally recognized when products are shipped and title passes to customers. We accrue for returns based on historical evidence of return rates. Service revenue and associated cost of sales are recognized when services are performed. A portion of service revenue and cost of service is deferred, as not all services are performed in the same period as billed. Cash Equivalents — The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The carrying amount of the Company’s cash equivalents at December 31, 2019 approximates fair value. Allowance for Doubtful Accounts — The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filings, substantial down-grading of credit ratings), a specific reserve for bad debts is recorded against amounts due to reduce the receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes reserves for bad debts based on the Company’s historical experience of bad debt write-offs as a percent of accounts receivable outstanding. If circumstances change (e.g., higher than expected defaults or an unexpected material adverse change in a major customer's ability to meet its financial obligations), the estimates of the recoverability of amounts due the Company could be revised. Inventories — Inventories principally consist of finished goods stated at the lower of cost or net realizable value using the first-in-first-out method for the Lawson segment and weighted average for the Bolt segment. To reduce the cost basis of inventory to a lower of cost or net realizable value, a reserve is recorded for slow-moving and obsolete inventory based on historical experience and monitoring of current inventory activity. Estimates are used to determine the necessity of recording these reserves based on periodic detailed analysis using both qualitative and quantitative factors. As part of this analysis, the Company considers several factors including the inventories length of time on hand, historical sales, product shelf life, product life cycle, product category and product obsolescence. Property, Plant and Equipment — Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed primarily by the straight-line method for buildings, machinery and equipment, furniture and fixtures and vehicles. The Company estimates useful lives of 20 to 40 years for buildings and improvements and 3 to 10 years for machinery and equipment, furniture and fixtures and vehicles. Amortization of financing and capital leases is included in depreciation expense. Depreciation expense was $3.9 million and $4.8 million for 2019 and 2018 respectively. Capitalized software is amortized over estimated useful lives of 3 to 5 years using the straight-line method. Amortization expense of capitalized software was $0.6 million and $1.1 million for 2019 and 2018 respectively. Cash Value of Life Insurance — The Company has invested funds in life insurance policies on certain current and former employees. The cash surrender value of the policies is invested in various investment instruments and is recorded as an asset on our consolidated balance sheet. The Company records these funds at contractual value. The change in the cash surrender value of the life insurance policies, which is recorded as a component of General and administrative expenses, is the change in the policies' contractual values. Deferred Compensation — The Company’s Executive Deferral Plan (“Deferral Plan”) allows certain executives to defer payment of a portion of their earned compensation. The deferred compensation is recorded in an Account Balance, which is a bookkeeping entry made by the Company to measure the amount due to the participant. The Account Balance is equal to the participant’s deferred compensation, adjusted for increases and/or decreases in the amount that the participant has designated to one or more bookkeeping portfolios that track the performance of certain mutual funds. Lawson adjusts the deferred compensation liability to equal the contractual value of the participants’ Account Balances. These adjustments are the changes in contractual value of the individual plans and are recorded as a component of General and administrative expenses. Stock-Based Compensation — Compensation based on the share value of the Company’s common stock is valued at its fair value at the grant date and the expense is recognized over the vesting period. Fair value is re-measured each reporting period for liability-classified awards that may be redeemable in cash. We account for forfeitures of stock-based compensation in the period which they occur. Goodwill — The Company had $20.9 million and $20.1 million of goodwill in 2019 and 2018, respectively. Goodwill represents the cost of business acquisitions in excess of the fair value of identifiable net tangible and intangible assets acquired. Goodwill is allocated to the appropriate reporting unit as reviewed by the Company’s segment managers. The Company reviews goodwill for potential impairment annually on December 1^st, or when an event or other circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. The first step in the multi-step process to determine if goodwill has been impaired and to what degree is to review the relevant qualitative factors that could cause the fair value of the reporting unit to decrease below the carrying value of the reporting unit. After reviewing the qualitative factors relevant to the reporting units, including conditions surrounding the industry we operate in compared to when the acquisitions were completed, the financial performance of the reporting units compared to our projected results, and macroeconomic conditions as a whole, we have determined that it is more likely than not that the fair value of the reporting units exceed their carrying value, therefore goodwill has not been impaired and no further steps need to be taken. Intangible Assets — The Company's intangible assets consist of trade names, and customer relationships. Intangible assets are amortized over weighted average 15 and 11 year estimated useful lives for trade names and customer relationships, respectively. Impairment of Long-Lived Assets — The Company reviews its long-lived assets, including property, plant and equipment and definite life intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment to be recognized is measured based on the amount by which the carrying amount of the asset exceeds its fair value. No triggering events or impairments occurred in 2019. In 2018 the Company determined that a triggering event had occurred when it determined that it would most likely exercise its put option on a building of a previously discontinued operation in Decatur, Alabama. Accordingly, the Company recorded an impairment charge of $0.2 million in 2018 based upon the anticipated proceeds less its carrying value. Income Taxes — Deferred tax assets or liabilities reflect temporary differences between amounts of assets and liabilities for financial and tax reporting. Such amounts are adjusted, as appropriate, to reflect changes in enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is established to offset any deferred tax assets if, based upon the available evidence, it is more likely than not (i.e. greater than 50% likely) that some or all of the deferred tax assets will not be realized. The determination of the amount of a valuation allowance to be provided on recorded deferred tax assets involves estimates regarding (1) the timing and amount of the reversal of taxable temporary differences, (2) expected future taxable income, (3) the impact of tax planning strategies and (4) the ability to carry back deferred tax assets to offset prior taxable income. In assessing the need for a valuation allowance, we consider all available positive and negative evidence, including past operating results, projections of future taxable income and the feasibility of ongoing tax planning strategies. The projections of future taxable income include a number of estimates and assumptions regarding our volume, pricing and costs. Additionally, valuation allowances related to deferred tax assets can be impacted by changes to tax laws. Significant judgment is required in determining income tax provisions as well as deferred tax asset and liability balances, including the estimation of valuation allowances and the evaluation of tax positions. Earnings from the Company's foreign subsidiaries are considered to be indefinitely reinvested. A distribution of these non-U.S. earnings in the form of dividends or otherwise would subject the Company to foreign withholding taxes and may subject the Company to U.S. federal and state taxes. The Company recognizes the benefit of tax positions when a benefit is more likely than not (i.e., greater than 50% likely) to be sustained on its technical merits. Recognized tax benefits are measured at the largest amount that is more likely than not to be sustained, based on cumulative probability, in final settlement of the position. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Leases — Leases are categorized as either operating or financing leases at commencement. For both classes of leases, a Right Of Use ("ROU") asset and corresponding lease liability are recognized at commencement. Operating leases consist of the company headquarters, distribution centers, and Bolt branches. Financing leases consist of equipment such as forklifts and copiers. The value of the lease assets and liabilities are the present value of the total cash payments for each lease. The Company uses its incremental borrowing rate to discount the total cash payments to present value for each lease. The Company will review each lease to determine if there is a more appropriate discount rate to apply. Upon commencement, rent expense is recognized on a straight line basis for each operating lease. Each financing lease ROU asset is amortized on a straight line basis over the lease period. Earnings per Share — Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution from the exercise or conversion of outstanding stock options, market stock units and restricted stock awards into common stock. For the year ended December 31, 2019 no options to purchase shares of common stock were excluded from the computation of diluted earnings per share because all of the options were in the money. For the year ended December 31, 2018 stock options to purchase 46,067 of the Company's common stock were excluded from the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common stock. Foreign Currency — The accounts of foreign subsidiaries are measured using the local currency as the functional currency. All balance sheet amounts are translated into U.S. dollars using the exchange rates in effect at the applicable period end. Components of income or loss are translated using the average exchange rate for each reporting period. Gains and losses resulting from changes in the exchange rates from translation of the subsidiary accounts in local currency to U.S. dollars are reported as a component of Accumulated other comprehensive income or loss in the consolidated balance sheets. Gains and losses resulting from the effect of exchange rate changes on transactions denominated in currencies other than the functional currency are included as a component of net income or loss upon settlement of the transaction. Gains and losses resulting from intercompany transactions are included as a component of net income or loss each reporting period unless the transactions are of a long-term-investment nature and settlement is not planned or anticipated in the foreseeable future, in which case the gains and losses are recorded as a component of accumulated other comprehensive income or loss in the consolidated balance sheets. Treasury Stock —The Company repurchased 32,362 of its common stock in 2019 through its previously announced stock repurchase plan. The Company repurchased 64,252 and 16,512 shares of its common stock in 2019 and 2018, respectively from employees upon the vesting of restricted stock to offset the income taxes owed by those employees. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of stockholders’ equity. The cost of the common stock repurchased and held in treasury was $4.5 million and $0.5 million in 2019 and 2018, respectively. Acquisitions — The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions for the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Use of Estimates — Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported for service revenue, service cost, allowance for doubtful accounts, inventory reserves, goodwill and intangible assets valuation, and income taxes in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which revises the requirements for how an entity should measure credit losses on financial instruments. The pronouncement is effective for smaller reporting companies in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and the new guidance will be applied on a prospective basis. The Company is still evaluating the effect the adoption of the new standard will have on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. Subsequently, the FASB has issued additional ASUs which further clarify this guidance. Under the new guidance, at the lease commencement date, a lessee recognizes a right-of-use (“ROU”) asset representing its right to use the underlying asset and a lease liability which is initially measured at the estimated present value of the future lease payments. These amounts represent the estimated economic benefit the Company will receive over the term of the lease. For results of operations purposes, leases are classified as either operating or finance leases. For operating leases, lease expense is recognized on a straight line basis. For finance leases, the lease liability and interest on the lease liability is recognized using the Company's incremental borrowing rate. The amortization of the ROU asset is recognized over the useful life of the asset. The Company adopted ASU 2016-02 on January 1, 2019 using the modified retrospective method. The Company elected a package of practical expedients, which included the decision to not reassess certain direct costs for existing leases at the date of implementation. These direct costs included certain items such as commissions, legal and documentation preparation fees and payments to incentivize existing tenants to terminate its lease. These direct costs are capitalized for new leases entered into after January 1, 2019. The Company elected that, as a practical expedient, it will not separate lease components from non-lease components for certain types of leases. The effect on the Company’s results of operations in subsequent periods is not significant. The impact of ASU 2016-02 is non-cash in nature and does not affect the Company’s cash flows. Upon transition to ASU 2016-02, the Company removed the financing lease for the building associated with the McCook distribution facility. The Company then reassessed the land and building at the McCook distribution facility as an operating lease. Additional quantitative and qualitative presentations and disclosures related to the Company's leases are provided in Note 4 - Leases.

Income Taxes Components of income tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income (loss) from continuing operations before income taxes
United States	$ 5,418	$ 6,839
Canada	4,256	24
Income (loss) from continuing operations before income taxes	9,674	6,863
Current income tax expense (benefit):
U.S. state	136	165
Canada	291	257
Total	427	422
Deferred income tax expense (benefit):
Deferred Federal Income Tax Expense (Benefit)	2,012	721
Deferred State and Local Income Tax Expense (Benefit)	303	(464)
Deferred Foreign Income Tax Expense (Benefit)	(289)	(30)
Deferred Income Tax Expense (Benefit)	2,026	227
Total income tax expense (benefit):
Federal Income Tax Expense (Benefit), Continuing Operations	2,012	721
State and Local Income Tax Expense (Benefit), Continuing Operations	439	(299)
Foreign Income Tax Expense (Benefit), Continuing Operations	2	227
Income Tax Expense (Benefit)	$ 2,453	$ 649

Acquisitions (Details) - USD ($) $ in Thousands	12 Months Ended
Acquisitions (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 0	$ 5,307
Revenue, Net (Deprecated 2018-01-31)	370,785	349,637
Goodwill, Acquired During Period	0	2,086
Screw Products [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	5,150
Finite-Lived Customer Relationships, Gross	2,580
Finite-Lived Trade Names, Gross	470
Revenue, Net (Deprecated 2018-01-31)	$ 2,600	$ 600
Trade Names [Member] \| Screw Products [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	15 years
Customer Relationships [Member] \| Screw Products [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years

Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Financial information for the Company's reportable segments follows:



	(Dollars in thousands)
	Year Ended December 31,
	2019			2018
Net sales
Lawson	$	329,367		$	313,095
Bolt	41,418			36,542
Consolidated total	$	370,785		$	349,637

Gross profit
Lawson	$	181,567		$	175,517
Bolt	15,787			14,023
Consolidated total	$	197,354		$	189,540

Operating Income
Lawson	$	6,483		$	7,500
Bolt	2,583			1,710
Consolidated total	9,066			9,210

Interest expense	(603		)	(1,009		)
Other income (expense), net	1,211			(1,338		)
Income before income taxes	$	9,674		$	6,863

Capital expenditures
Lawson	$	1,522		$	1,907
Bolt	506			617
Consolidated total	$	2,028		$	2,524

Depreciation and amortization
Lawson	$	4,757		$	6,008
Bolt	1,136			847
Consolidated total	$	5,893		$	6,855

Total assets
Lawson	$	168,803		$	169,216
Bolt	44,174			36,067
Investment in Subsidiary	(8,548		)	(8,141		)
Consolidated total	$	204,429		$	197,142

Financial information by geographic area, continuing operations

Financial information related to the Company’s continuing operations by geographic area follows:



	(Dollars in Thousands)
	Year Ended December 31,
	2019		2018
Net sales⁽¹⁾
United States	$	295,675	$	279,917
Canada	75,110		69,720
Consolidated total	$	370,785	$	349,637

Long-lived assets⁽²⁾
United States	$	25,478	$	25,539
Canada	35,849		31,507
Consolidated total	$	61,327	$	57,046

Intangible assets (Notes)

12 Months Ended

Dec. 31, 2018

Intangible Assets [Abstract]

Intangible Assets Disclosure [Text Block]

Intangible assets

The gross carrying amount and accumulated amortization by intangible asset class were as follows:



	(Dollars in thousands)							(Dollars in thousands)
	December 31, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Trade names	$	8,422	$	(2,020	)	$	6,402	$	8,090	$	(1,447	)	$	6,643
Customer relationships	7,337		(1,404		)	5,933		7,114		(645		)	6,469
	$	15,759	$	(3,424	)	$	12,335	$	15,204	$	(2,092	)	$	13,112

Amortization expense of $1.3 million and $0.9 million related to intangible assets was recorded in General and administrative expenses for 2019 and 2018, respectively. The estimated aggregate amortization expense for each of the next five years are as follows:



	(Dollars in thousands)
Year	Amortization
2020	$	1,495
2021	1,611
2022	1,406
2023	1,292
2024	1,196
Thereafter	5,335
	$	12,335

The gross carrying amount and accumulated amortization by intangible asset class were as follows:



	(Dollars in thousands)							(Dollars in thousands)
	December 31, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Trade names	$	8,422	$	(2,020	)	$	6,402	$	8,090	$	(1,447	)	$	6,643
Customer relationships	7,337		(1,404		)	5,933		7,114		(645		)	6,469
	$	15,759	$	(3,424	)	$	12,335	$	15,204	$	(2,092	)	$	13,112

Intangible assets Schedule of intangibles (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 15,759	$ 15,204
Finite-Lived Intangible Assets, Accumulated Amortization	(3,424)	(2,092)
Finite-Lived Intangible Assets, Net	12,335	13,112
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	8,422	8,090
Finite-Lived Intangible Assets, Accumulated Amortization	(2,020)	(1,447)
Finite-Lived Intangible Assets, Net	6,402	6,643
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	7,337	7,114
Finite-Lived Intangible Assets, Accumulated Amortization	(1,404)	(645)
Finite-Lived Intangible Assets, Net	$ 5,933	$ 6,469

Stock-Based Compensation Plans Market Stock Units (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
MSU Expense	$ 1,200,000	$ 1,200,000
Number of Market Stock Units
Outstanding on December 31, 2018	193,135
Granted	41,855
Exchanged for stock	(89,179)
Outstanding on December 31, 2019	139,643	193,135
Maximum Shares Potentially Issuable
Outstanding on December 31, 2018	279,542
Granted	62,784
Exchanged for stock	(128,573)
Outstanding on December 31, 2019	178,118	279,542
MSUs Cancelled	(6,168)	(9,252)
MSU Shares Maximum vs Earned	0
MSU Potential Common Shares Issuable Change	(26,383)
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential Shares From MSU Vest	$ 0
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential Shares From MSU Vest	$ 1.50
Trading days	60 days

Schedule II - Valuation and Qualifying Accounts Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Allowance for doubtful accounts:
The roll forward of valuation accounts were as follows:
Balance at beginning of period	$ 549	$ 476
Charged to costs and expenses	623	695
Deductions	(579)	(622)
Balance at end of period	593	549
Valuation allowance for deferred tax assets:
The roll forward of valuation accounts were as follows:
Balance at beginning of period	2,569	2,556
Charged to costs and expenses	0	13
Deductions	(1,334)	0
Balance at end of period	$ 1,235	$ 2,569

Stock-Based Compensation Plans Plan Administration (Details) - 2009 Equity Compensation Plan	12 Months Ended
	Dec. 31, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	279,000
share based compensation plan maximum share grants to non-employee directors	20,000
Maximum number of shares per employee	125,000

Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 370,785	$ 349,637
Fastening Systems \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
Cutting Tools and Abrasives \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
Fluid Power \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
Specialty Chemicals \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
Electrical \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
Aftermarket Automotive Supplies \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
Safety \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
Welding and Metal Repair \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
Other \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
Sales [Member] \| Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	0.00%	0.00%
United States
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 295,675	$ 279,917
Canada
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 75,110	$ 69,720

Income Taxes Components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Net operating loss carryforward	$ 7,786	$ 9,878
Compensation and benefits	9,947	9,598
Inventory reserve	1,589	1,769
Capital Loss Carryforward	0	1,317
Accounts receivable reserve	152	142
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent	3,326	0
Other	146	457
Total deferred tax assets	22,946	23,161
Deferred Tax Liabilities, Intangible Assets	2,360	2,478
Deferred Tax Liabilities, Leasing Arrangements	2,850	0
Deferred tax liabilities:
Property, plant and equipment	353	(20)
Other	625	303
Total deferred liabilities	6,188	2,761
Net deferred assets before valuation allowance	16,758	20,400
Valuation allowance	(1,235)	(2,569)
Net deferred assets	$ 15,523	$ 17,831

Segment Information

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Reporting

Information

The Company operates in two separate reportable segments because of differences in the businesses financial characteristics and the methods they employ to deliver product to customers. The operating segments are reviewed by the Company’s chief operating decision maker responsible for reviewing operating performance and allocating resources. The Lawson segment primarily relies on its large network of sales representatives to visit the customer at the customers' location and produce sales orders for product that is then shipped to the customer and also provides VMI services. The Bolt segment primarily sells product to customers when the customers visit one of Bolt's 14 branch locations and the product is delivered to the customers at the point of sale. The Bolt segment total assets include the value of the acquired intangibles and the related amortization within its operating income.

Financial information for the Company's reportable segments follows:



	(Dollars in thousands)
	Year Ended December 31,
	2019			2018
Net sales
Lawson	$	329,367		$	313,095
Bolt	41,418			36,542
Consolidated total	$	370,785		$	349,637

Gross profit
Lawson	$	181,567		$	175,517
Bolt	15,787			14,023
Consolidated total	$	197,354		$	189,540

Operating Income
Lawson	$	6,483		$	7,500
Bolt	2,583			1,710
Consolidated total	9,066			9,210

Interest expense	(603		)	(1,009		)
Other income (expense), net	1,211			(1,338		)
Income before income taxes	$	9,674		$	6,863

Capital expenditures
Lawson	$	1,522		$	1,907
Bolt	506			617
Consolidated total	$	2,028		$	2,524

Depreciation and amortization
Lawson	$	4,757		$	6,008
Bolt	1,136			847
Consolidated total	$	5,893		$	6,855

Total assets
Lawson	$	168,803		$	169,216
Bolt	44,174			36,067
Investment in Subsidiary	(8,548		)	(8,141		)
Consolidated total	$	204,429		$	197,142

Financial information related to the Company’s continuing operations by geographic area follows:



	(Dollars in Thousands)
	Year Ended December 31,
	2019		2018
Net sales⁽¹⁾
United States	$	295,675	$	279,917
Canada	75,110		69,720
Consolidated total	$	370,785	$	349,637

Long-lived assets⁽²⁾
United States	$	25,478	$	25,539
Canada	35,849		31,507
Consolidated total	$	61,327	$	57,046

(1) Net sales are attributed to countries based on the location of customers.

(2) Long-lived assets primarily consist of property, plant and equipment, goodwill, intangibles, right of use assets and other assets.

Commitments and Contingencies Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease payments

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands):



Year Ended December 31,	Operating Leases		Financing Leases		Total

2020	$	4,136	$	267	$	4,403
2021	4,169		202		4,371
2022	3,099		122		3,221
2023	1,437		61		1,498
2024	482		5		487
Thereafter	600		—		600
Total lease payments	13,923		657		14,580
Less: Interest	1,199		47		1,246
Present value of lease liabilities	$	12,724	$	610	$	13,334

The Company's future minimum lease commitments, principally for facilities and equipment, as of December 31, 2018 were as follows:



	(Dollars in thousands)
Year ended December 31,	Operating Leases		Financing Lease		Capital Leases
2019	$	2,574	$	1,395	$	201
2020	2,369		1,444		155
2021	2,349		1,493		91
2022	2,008		760		11
2023	1,130		—		—
Thereafter	374		—		—
Total	$	10,804	$	5,092	$	458

Intangible assets Future intangible amortization schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Future intangible amortization schedule [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 1,495
Finite-Lived Intangible Assets, Amortization Expense, Year Two	1,611
Finite-Lived Intangible Assets, Amortization Expense, Year Three	1,406
Finite-Lived Intangible Assets, Amortization Expense, Year Four	1,292
Finite-Lived Intangible Assets, Amortization Expense, Year Five	1,196
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	5,335
Finite-Lived Intangible Assets, Net	$ 12,335	$ 13,112

Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Plans

Stock-Based Compensation Plans

Plan Administration

The Company's Amended and Restated 2009 Equity Compensation Plan (“Equity Plan”) provides for the grant of nonqualified and incentive stock options, stock awards and stock units to officers and employees of the Company. The Equity Plan also provides for the grant of option rights and restricted stock to non-employee directors. As of December 31, 2019, the Company had approximately 279,000 shares of common stock still available under the Equity Plan. Non-employee directors are limited to grants of no more than 20,000 shares of common stock in any calendar year and other than non-employee directors are limited to grants of no more than 125,000 shares of common stock in any calendar year. The Equity Plan is administered by the Compensation Committee of the Board of Directors, or its designee, which as administrator of the plan, has the authority to select plan participants, grant awards, and determine the terms and conditions of the awards.

The Company also has a Stock Performance Rights Plan (“SPR Plan”) that provides for the issuance of Stock Performance Rights (“SPRs”) that allow non-employee directors, officers and key employees to receive cash awards, subject to certain restrictions, equal to the appreciation of the Company's common stock. The SPR Plan is administered by the Compensation Committee of the Board of Directors.

Stock Performance Rights

SPRs entitle the recipient to receive a cash payment equal to the excess of the market value of the Company's common stock over the SPR exercise price when the SPRs are surrendered. Expense, equal to the fair market value of the SPR at the date of grant and remeasured each reporting period, is recorded ratably over the vesting period. Compensation expense is included in General and administrative expense. The outstanding SPRs were granted with approximately a seven year life and vest over one to three years beginning on the first anniversary of the date of the grant.

On December 31, 2019, the SPRs outstanding were re-measured at fair value using the Black-Scholes valuation model. This model requires the input of subjective assumptions that may have a significant impact on the fair value estimate. The weighted-average estimated value of SPRs outstanding as of December 31, 2019 was $25.34 per SPR using the following assumptions:



Expected volatility	32.1% to 40.70%
Risk-free rate of return	1.6% to 1.7%
Expected term (in years)	0.5 to 4.5
Expected annual dividend	$0

The expected volatility was based on the historic volatility of the Company's stock price commensurate with the expected life of the SPR. The risk-free rate of return reflects the interest rate offered for zero coupon treasury bonds over the expected life of the SPR. The expected life represents the period of time that options granted are expected to be outstanding and was calculated using the simplified method allowed by the SEC, which approximates our historical experience. The estimated annual dividend was based on the recent dividend payout trend.

Compensation expenses of $14.9 million and $4.8 million were recorded in General and administrative expenses for the years ended December 31, 2019 and 2018, respectively. Cash in the amount of $13.4 million and $0.1 million was paid out for SPR exercises in 2019 and 2018, respectively. A liability of $14.9 million reflecting the estimated fair value of future pay-outs has been included as a component of Accrued expenses and other liabilities on the consolidated balance sheets.

Activity related to the Company’s SPRs during the year ended December 31, 2019 was as follows:



	Number of SPRs		Weighted Average Exercise Price
Outstanding on December 31, 2018	958,521		$	19.75
Granted	26,825		30.78
Exercised	(379,567	)	9.65
Cancelled	(5,918	)	27.15
Outstanding on December 31, 2019	599,861		26.56

Exercisable on December 31, 2019	523,084		$	26.50

The SPRs outstanding had an intrinsic value of $15.3 million as of December 31, 2019. Unrecognized compensation cost related to non-vested SPRs was $1.0 million at December 31, 2019, which will be recognized over a weighted average period of 1.2 years. During the year ended December 31, 2019, 47,779 SPRs with a fair value of $1.4 million vested. At December 31, 2019, the weighted average remaining contractual term was 3.0 years for all outstanding SPRs and 2.5 years for all exercisable SPRs.

Restricted Stock Awards

Restricted stock awards ("RSAs") generally vest over a one to three year period beginning on the first anniversary of the date of the grant. Upon vesting, the vested restricted stock awards are exchanged for an equal number of the Company’s common stock. The participants have no voting or dividend rights with the restricted stock awards. The restricted stock awards are valued at the closing price of the common stock on the date of grant and the expense is recorded ratably over the vesting period.

Compensation expenses of $1.3 million and $1.4 million related to the RSAs were recorded in General and administrative expenses for 2019 and 2018, respectively. Activity related to the Company’s RSAs during the year ended December 31, 2019 was as follows:



	Restricted Stock Awards
Outstanding on December 31, 2018	119,256
Granted	26,826
Exchanged for common shares	(47,493	)
Forfeited	(7,680	)
Outstanding on December 31, 2019	90,909

As of December 31, 2019, there was $0.8 million of total unrecognized compensation cost related to RSAs that will be recognized over a weighted average period of 1.0 year. The awards granted in 2019 had a weighted average grant date fair value of $36.68 per share.

Market Stock Units

Market Stock Units ("MSUs") are exchangeable for between 0% to 150% of the Company's common shares at the end of the vesting period based on the trailing 60 day average closing price of the Company's common stock. The value of the MSUs was determined using a geometric brownian motion model that, based on certain variables, generates a large number of random trials simulating the price of the common stock over the measurement period. Expenses of $1.2 million related to MSUs were recorded in General and administrative expenses in both of the years ended December 31, 2019 and 2018. Activity related to the Company’s MSUs during the year ended December 31, 2019 was as follows:



	Number of Market Stock Units		Maximum Shares Potentially Issuable
Outstanding on December 31, 2018	193,135		279,542
Granted	41,855		62,784
Exchanged for stock	(89,179	)	(128,573	)
Cancelled	(6,168	)	(9,252	)
Maximum vs. earned ⁽¹⁾	—		(26,383	)
Outstanding on December 31, 2019	139,643		178,118


(1)	Difference between 150% of common stock that was potentially realizable for MSUs when originally granted and the actual amount of common stock that was earned on the vesting date.

Stock Options

Each stock option can be exchanged for one share of the Company’s common stock at the stated exercise price. Expense related to stock options was $0.1 million in both 2019 and 2018. Unrecognized compensation at December 31, 2019 was $0.1 million. Upon vesting, stock options are recognized as a component of equity. Activity related to stock options during the year ended December 31, 2019 was as follows:



	Number of Stock Options		Weighted average exercise price
Outstanding on December 31, 2018	83,471		27.14
Exercised	(2,372	)	14.04
Forfeited	(1,099	)	14.04
Outstanding on December 31, 2019	80,000		27.70

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Depreciation	$ 3,900	$ 4,800
Amortization expense of capitalized software	$ 600	$ 1,100
Property, Plant and Equipment [Line Items]
Equity Method Investment, Ownership Percentage	50.00%
Shars Repurchased Under Share Repurchase Plan	32,362
Shares Paid for Tax Withholding for Share Based Compensation	64,252	16,512
Impairment of Long-Lived Assets Held-for-use	$ 200
Cumulative Effect of New Accounting Principle in Period of Adoption			$ (1,937)	$ 329
Shares repurchased held in treasury	(4,527)	$ (523)
Goodwill	20,923	20,079			$ 19,614
Treasury Stock, Value, Acquired, Cost Method	$ (4,527)	(523)
Buildings and improvements \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	20 years
Buildings and improvements \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years
Machinery and equipment, furniture and fixtures, and vehicles \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Machinery and equipment, furniture and fixtures, and vehicles \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Capitalized software \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Capitalized software \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Treasury Stock
Property, Plant and Equipment [Line Items]
Treasury Stock, Value, Acquired, Cost Method	$ (4,527)	$ (523)
Stock Compensation Plan [Member]
Property, Plant and Equipment [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	46,067
Trade Names [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Assets, Remaining Amortization Period	15 years
Customer Relationships [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Assets, Remaining Amortization Period	11 years

Leases Net Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases Net Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Net Lease Cost [Abstract]
Operating Lease, Cost	$ 4,729	$ 3,329
Finance Lease, Right-of-Use Asset, Amortization	206
Finance Lease, Interest Expense	30
Finance Lease, Cost	236
Sublease Income	(160)
Lease, Cost	$ 4,805

Leases Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Lease Assets and Liabilities [Abstract]
Operating Lease, Right-of-Use Asset, Accumulated Depreciation	$ 1,216
Operating Lease, Right-of-Use Asset	10,592
Finance Lease, Right-of-Use Asset	654
Right of use assets	11,246	$ 0
Operating Lease, Liability, Current	3,591
Finance Lease, Liability, Current	239
Lease obligation	3,830	$ 0
Operating Lease, Liability, Noncurrent	9,133
Finance Lease, Liability, Noncurrent	371
Lease Liability, Noncurrent	9,504
Finance Lease, Right-of-Use Asset, Accumulated Depreciation	$ 205

Stock-Based Compensation Plans Stock-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Valuation assumptions

The weighted-average estimated value of SPRs outstanding as of December 31, 2019 was $25.34 per SPR using the following assumptions:



Expected volatility	32.1% to 40.70%
Risk-free rate of return	1.6% to 1.7%
Expected term (in years)	0.5 to 4.5
Expected annual dividend	$0

Activity related to SPRs

Activity related to the Company’s SPRs during the year ended December 31, 2019 was as follows:



	Number of SPRs		Weighted Average Exercise Price
Outstanding on December 31, 2018	958,521		$	19.75
Granted	26,825		30.78
Exercised	(379,567	)	9.65
Cancelled	(5,918	)	27.15
Outstanding on December 31, 2019	599,861		26.56

Exercisable on December 31, 2019	523,084		$	26.50

Activity related to RSAs

Activity related to the Company’s RSAs during the year ended December 31, 2019 was as follows:



	Restricted Stock Awards
Outstanding on December 31, 2018	119,256
Granted	26,826
Exchanged for common shares	(47,493	)
Forfeited	(7,680	)
Outstanding on December 31, 2019	90,909

MSU Rollforward



	Number of Market Stock Units		Maximum Shares Potentially Issuable
Outstanding on December 31, 2018	193,135		279,542
Granted	41,855		62,784
Exchanged for stock	(89,179	)	(128,573	)
Cancelled	(6,168	)	(9,252	)
Maximum vs. earned ⁽¹⁾	—		(26,383	)
Outstanding on December 31, 2019	139,643		178,118

Stock Option Activity Table

Stock Options



	Number of Stock Options		Weighted average exercise price
Outstanding on December 31, 2018	83,471		27.14
Exercised	(2,372	)	14.04
Forfeited	(1,099	)	14.04
Outstanding on December 31, 2019	80,000		27.70

Property, Plant and Equipment Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 71,137	$ 85,226
Accumulated depreciation and amortization,	(54,591)	(61,678)
Property, plant and equipment, less accumulated depreciation and amortization	16,546	23,548
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,625	2,565
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	15,356	16,858
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	24,509	23,955
Capitalized software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	22,136	21,738
McCook facility
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	0	12,961
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	5,673	5,884
Capital leases
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	0	684
Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	155	190
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 683	$ 391

Credit Agreement Quarterly Financial Covenants (Details)	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018
Required Minimum Value [Member]
Line of Credit Facility [Line Items]
Minimum Debt Service Coverage Ratio	1.15
Schedule of minimum EBITDA level achievable on quarterly basis
Minimum Net Leverage Ratio	3.25
Actual Value [Member]
Schedule of minimum EBITDA level achievable on quarterly basis
MinTangibleNetWorth	$ 0.00
Maximum \| Actual Value [Member]
Line of Credit Facility [Line Items]
EBITDA to Fixed Charges	10.76
Minimum \| Required Minimum Value [Member]
Line of Credit Facility [Line Items]
EBITDA to Fixed Charges	1.00
Schedule of minimum EBITDA level achievable on quarterly basis
Minimum Net Leverage Ratio	1.00	1.00
Minimum \| Actual Value [Member]
Line of Credit Facility [Line Items]
EBITDA to Fixed Charges	1.00

Credit Agreement

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Revolving Line of Credit

Credit Agreement

New Credit Agreement

In October, 2019, the Company entered into a Credit Agreement (the "Credit Agreement") with J.P. Morgan Chase Bank, N.A. as administrative agent, and including CIBC Bank USA and Bank of America, N.A. as other lenders. The Credit Agreement matures on October 11, 2024 and provides for $100.0 million of revolving commitments. The Credit Agreement allows borrowing capacity to increase to $150.0 million subject to meeting certain criteria and additional commitments from its lenders.

The Credit Agreement consists of borrowings as alternate base rate loans, Canadian prime rate loans, Eurodollar loans, and Canadian dollar offered rate loans as the Company requests. The applicable interest rate spread is determined by the type of borrowing used and the Total Net Leverage Ratio as of the most recent fiscal quarter as defined in the Credit Agreement.

The covenants associated with the Credit Agreement restrict the ability of the Company to, among other things: incur additional indebtedness and liens, make certain investments, merge or consolidate, engage in certain transactions such as the disposition of assets and sales-leaseback transactions, and make certain restricted cash payments such as dividends in excess of defined amounts contained within the Credit Agreement. In addition to these items and other customary terms and conditions, the Credit Agreement requires the Company to comply with certain financial covenants as follows:

a) The Company is required to maintain an EBITDA to Fixed Charge Coverage Ratio of at least 1.15 to 1.00 for any period of four consecutive fiscal quarters ending on the last day of any fiscal quarter; and

b) The Company is required to maintain a Total Net Leverage Ratio of no more than 3.25 to 1.00 on the last day of any fiscal quarter. The maximum Total Net Leverage Ratio will be allowed to increase to 3.75 to 1.00 after certain permitted acquisitions.

The Credit Agreement also includes events of default for, among others, non-payment of obligations under the Credit Agreement, change of control, cross default to other indebtedness in an aggregate amount in excess of $5.0 million, failure to comply with covenants, and insolvency.

At December 31, 2019, the Company had $2.3 million outstanding balance under its revolving line of credit facility and additional borrowing availability of $96.7 million. The carrying amount of the Company’s debt at December 31, 2019 approximates its fair value. The weighted average interest rate was 4.59% in 2019. The Company had $1.1 million of outstanding letters of credit as of December 31, 2019.

In addition to other customary representations, warranties and covenants, the results of the financial covenants are provided below:



Quarterly Financial Covenants	Requirement	Actual
EBITDA to fixed charges ratio	1.15 : 1.00	10.76 : 1.00
Total net leverage ratio	3.25 : 1.00	0.00 : 1.00

The Company was in compliance with all covenants as of December 31, 2019.

Previous Credit Agreements

Prior to October 2019, Lawson had a Loan and Security Agreement (“Loan Agreement”) with CIBC Bank USA which consisted of a $40.0 million revolving line of credit facility. The borrowing capacity of the Loan Agreement was subject to certain limitations including the amount of the Company's eligible accounts receivable and inventory value. The interest rate was based on the Prime rate or LIBOR and the Company's debt to EBITDA ratio. The Loan Agreement was secured by a first priority perfected security interest in substantially all existing assets of the Company. Dividends were restricted to amounts not to exceed $7.0 million annually.

Prior to October 2019, Bolt Supply had a Commitment Letter ("Commitment Letter") with BMO Bank of Montreal which allowed Bolt Supply to access up to $5.5 million Canadian dollars in the form of either an overdraft facility or as commercial letters of credit. The Commitment Letter was secured by substantially all of Bolt Supply’s assets and carried an interest rate based on the bank's prime rate.

The new Credit Agreement that was entered into in October 2019 replaced the Loan Agreement and the Commitment Letter. The Company was in compliance with all covenants associated with these agreements at the time of payoff.

Stock-Based Compensation Plans Stock Performance Rights (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock Performance Rights
Accrued Employee Benefits, Current	$ 14,908,000	$ 13,458,000
Valuation assumptions:
Allocated Share-based Compensation Expense	100,000	100,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid	13,400,000	100,000
Weighted Average Exercise Price
MSU Expense	$ 1,200,000	1,200,000
Stock Performance Rights
Stock Performance Rights
Weighted average estimated value of SPRs outstanding (per share)	$ 25.34
Valuation assumptions:
Expected volatility, minimum, percent	32.10%
Expected volatility, maximum, percent	40.70%
Risk-free rate of return, minimum	1.60%
Risk-free rate of return, maximum	1.70%
Expected annual dividend	$ 0.00
Allocated Share-based Compensation Expense	$ 14,900,000	$ 4,800,000
Number of SPRs
Outstanding on December 31, 2018	958,521
Granted	26,825
Exercised	(379,567)
Cancelled	(5,918)
Outstanding on December 31, 2019	599,861	958,521
Exercisable on December 31, 2019	523,084
Weighted Average Exercise Price
Outstanding on December 31, 2018	$ 26.56	$ 19.75
Granted		30.78
Exercised		9.65
Cancelled		27.15
Outstanding on December 31, 2019		26.56
Exercisable on December 31, 2019		$ 26.50
SPRs outstanding, intrinsic value	$ 15,300,000
Total unrecognized compensation cost	$ 1,000,000
Unrecognized cost, period for recognition	1 year 2 months 12 days
Exercised	47,779
Vested in period, fair value	$ 1,400,000
Weighted average remaining contractual term, SPRs outstanding	3 years
Weighted average remaining contractual term, SPRs exercisable	2 years 6 months
Stock Performance Rights \| Minimum
Stock Performance Rights
Life of award	7 years
Award vesting period		1 year
Valuation assumptions:
Expected term	6 months
Stock Performance Rights \| Maximum
Stock Performance Rights
Award vesting period	3 years
Valuation assumptions:
Expected term	4 years 6 months

Label	Element	Value
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	$ 5,216,000

Segment Information Geographic Information (Tables)

12 Months Ended

Dec. 31, 2018

Geographic Information [Abstract]

Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]

Financial information related to the Company’s continuing operations by geographic area follows:



	(Dollars in Thousands)
	Year Ended December 31,
	2019		2018
Net sales⁽¹⁾
United States	$	295,675	$	279,917
Canada	75,110		69,720
Consolidated total	$	370,785	$	349,637

Long-lived assets⁽²⁾
United States	$	25,478	$	25,539
Canada	35,849		31,507
Consolidated total	$	61,327	$	57,046

(1) Net sales are attributed to countries based on the location of customers.

(2) Long-lived assets primarily consist of property, plant and equipment, goodwill, intangibles, right of use assets and other assets.

Segment Information Segment (Details) - USD ($)	12 Months Ended
Segment Information Segment (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 370,785,000	$ 349,637,000
Gross Profit	197,354,000	189,540,000
Operating Income (Loss)	9,066,000	9,210,000
Interest Expense	(603,000)	(1,009,000)
Other Nonoperating Income (Expense)	1,211,000	(1,338,000)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	9,674,000	6,863,000
Payments to Acquire Property, Plant, and Equipment	2,028,000	2,524,000
Depreciation, Depletion and Amortization	5,893,000	6,855,000
Assets	204,429,000	197,142,000
Notes Receivable, Related Parties	(8,548,000)	(8,141,000)
Lawson [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	329,367,000	313,095,000
Gross Profit	181,567,000	175,517,000
Operating Income (Loss)	6,483,000	7,500,000
Payments to Acquire Property, Plant, and Equipment	1,522,000	1,907,000
Depreciation, Depletion and Amortization	4,757,000	6,008,000
Assets	168,803,000	169,216,000
Bolt [Member] [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	41,418,000	36,542,000
Gross Profit	15,787,000	14,023,000
Operating Income (Loss)	2,583,000	1,710,000
Payments to Acquire Property, Plant, and Equipment	506,000	617,000
Depreciation, Depletion and Amortization	1,136,000	847,000
Assets	$ 44,174,000	$ 36,067,000

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Components of property, plant and equipment were as follows:



	(Dollars in thousands)
	December 31,
	2019			2018
Land	$	2,625		$	2,565
Buildings and improvements	15,356			16,858
Machinery and equipment	24,509			23,955
Capitalized software	22,136			21,738
Furniture and fixtures	5,673			5,884
Vehicles	155			190
McCook facility	—			12,961
Capital leases	—			684
Construction in progress	683			391
	71,137			85,226
Accumulated depreciation and amortization	(54,591		)	(61,678		)
	$	16,546		$	23,548

Assets relating to the McCook facility and capital leases are now accounted for as lease right of use assets. See Note 4 - Leases for transition to ASU 2016-02.

Segment Information (Details) - USD ($)	12 Months Ended
Segment Information (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 370,785,000	$ 349,637,000
Interest Expense	603,000	1,009,000
Gross Profit	197,354,000	189,540,000
Operating Income (Loss)	9,066,000	9,210,000
Long-Lived Assets	61,327,000	57,046,000
Other Nonoperating Income (Expense)	1,211,000	(1,338,000)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	9,674,000	6,863,000
Payments to Acquire Property, Plant, and Equipment	2,028,000	2,524,000
Depreciation, Depletion and Amortization	5,893,000	6,855,000
Assets	204,429,000	197,142,000
Notes Receivable, Related Parties	(8,548,000)	(8,141,000)
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	295,675,000	279,917,000
Long-Lived Assets	25,478,000	25,539,000
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	75,110,000	69,720,000
Long-Lived Assets	35,849,000	31,507,000
Lawson [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	329,367,000	313,095,000
Gross Profit	181,567,000	175,517,000
Operating Income (Loss)	6,483,000	7,500,000
Payments to Acquire Property, Plant, and Equipment	1,522,000	1,907,000
Depreciation, Depletion and Amortization	4,757,000	6,008,000
Assets	168,803,000	169,216,000
Bolt [Member] [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	41,418,000	36,542,000
Gross Profit	15,787,000	14,023,000
Operating Income (Loss)	2,583,000	1,710,000
Payments to Acquire Property, Plant, and Equipment	506,000	617,000
Depreciation, Depletion and Amortization	1,136,000	847,000
Assets	$ 44,174,000	$ 36,067,000

Acquisitions Pro Forma Results (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Pro Forma [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	$ 370,785	$ 349,637
Business Acquisition, Pro Forma Revenue	370,785	351,916
Net Income (Loss) Attributable to Parent	7,221	6,214
Business Acquisition, Pro Forma Net Income (Loss)	$ 7,221	$ 6,674

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Retirement and Security Bonus Plans	12 Months Ended
Retirement and Security Bonus Plans	Dec. 31, 2018
Retirement Benefits [Abstract]
Retirement and Security Bonus Plans	Retirement and Security Bonus Plans The Company provides a 401(k) defined contribution plan to allow employees a pre-tax investment vehicle to save for retirement. The Company made contributions to the 401(k) plan of $3.2 million and $3.0 million for the years ended December 31, 2019 and 2018, respectively. The Company provides a Deferred Profit Savings Plan ("DPSP") for certain Canadian employees and a Registered Retirement Savings Plan ("RRSP") for other Canadian employees. Both are deferred defined contribution retirement investment plans. The Company contributed $0.4 million and $0.3 million in 2019 and 2018, respectively. The Company provides a profit sharing plan for certain sales, office and warehouse employees. The amounts of the Company’s annual contributions are determined annually by the Board of Directors. Expenses incurred for the profit sharing plan were $0.8 million and $0.7 million for the years ended December 31, 2019 and 2018, respectively. The Company has a security bonus plan which was previously created for the benefit of its independent sales representatives, under the terms of which participants are credited with a percentage of their annual net commissions. The aggregate amounts credited to participants’ accounts vest 25% after five years, and an additional 5% vests each year thereafter upon qualification for the plan. On January 1, 2013, the Company converted all of its U.S. independent sales representatives to employees. The security bonuses for those converted employees continue to vest, but their accounts are no longer credited with a percentage of net commissions. For financial reporting purposes, amounts are charged to operations over the vesting period. Expenses incurred for the security bonus plan were $0.5 million and $0.6 million for the years ended December 31, 2019 and 2018, respectively. The security bonus plan is partially funded by a $6.8 million investment in the cash surrender value in life insurance of certain employees. Of the $12.0 million total liability, $0.2 million is classified as a current liability and the remaining $11.8 million is classified as long-term.

Goodwill (Notes)

12 Months Ended

Dec. 31, 2018

Goodwill [Abstract]

Goodwill Disclosure [Text Block]

Goodwill

Goodwill activity related to acquisitions is included in the table below:



	(Dollars in thousands)
	December 31,
	2019			2018
Beginning balance	$	20,079		$	19,614
Impact of foreign exchange	854			(1,452		)
Acquisition ⁽¹⁾	—			2,086
Adjustment to prior year allocation ⁽²⁾	(10		)	(169		)
Ending balance	$	20,923		$	20,079


(1)	The $2.1 million addition to goodwill in 2018 was due to the allocation of costs to acquire Screw Products.


(2)	The reduction of $0.2 million in 2018 resulted from an adjustment to goodwill created by the Bolt acquisition in 2017.

Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Commitments And Contingencies Disclosure [Line Items]
Total future minimum operating lease payments	$ 13,923	$ 10,804
Property, plant and equipment, gross	71,137	85,226
Accumulated depreciation and amortization	54,591	61,678
Payments for Environmental Liabilities	1,300
Finance Lease, Liability, Payments, Due	657	5,092
McCook facility
Commitments And Contingencies Disclosure [Line Items]
Property, plant and equipment, gross	0	12,961
Capital leases
Commitments And Contingencies Disclosure [Line Items]
Property, plant and equipment, gross	$ 0	$ 684

Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Lessee, Lease, Description [Line Items]
Operating Leases, Future Minimum Payments Due	$ 13,923		$ 10,804
Cumulative Effect of New Accounting Principle in Period of Adoption		$ (1,937)		$ 329
Retained Earnings
Lessee, Lease, Description [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ (1,937)		$ 329

Intangible assets Future amortization expense (Tables)

12 Months Ended

Dec. 31, 2018

Future intangible asset amortization expense [Abstract]

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The estimated aggregate amortization expense for each of the next five years are as follows:



	(Dollars in thousands)
Year	Amortization
2020	$	1,495
2021	1,611
2022	1,406
2023	1,292
2024	1,196
Thereafter	5,335
	$	12,335

Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Components of inventories



	(Dollars in thousands)
	December 31,
	2019			2018
Inventories, gross	$	60,500		$	58,215
Reserve for obsolete and excess inventory	(4,595		)	(5,328		)
Inventories, net	$	55,905		$	52,887

Stock-Based Compensation Plans Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
MSU Expense	$ 1.2	$ 1.2
Allocated Share-based Compensation Expense	$ 0.1	$ 0.1
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding on December 31, 2018	119,256
Granted	26,826
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(7,680)
Exchanged for common shares	(47,493)
Outstanding on December 31, 2019	90,909	119,256
Total unrecognized compensation cost	$ 0.8
Unrecognized cost, period for recognition	1 year
Granted	$ 36.68
2009 Equity Compensation Plan \| Restricted stock awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
2009 Equity Compensation Plan \| Restricted stock awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Selling, general and administrative expenses \| Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 1.3	$ 1.4

Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Schedule of accrued expenses and other liabilities

Accrued expenses and other liabilities consisted of the following:



	(Dollars in thousands)
	December 31,
	2019		2018

Accrued stock-based compensation (stock performance rights)	$	14,908	$	13,458
Accrued compensation	9,238		10,740
Accrued and withheld taxes, other than income taxes	4,387		1,674
Accrued profit sharing	916		899
Accrued severance	778		304
Deferred revenue	648		693
Accrued health benefits	578		614
Environmental remediation accrual	20		1,376
Financing lease obligation ⁽¹⁾	—		1,207
Other	7,838		9,214
	$	39,311	$	40,179

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Jan. 31, 2020	Jun. 30, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	LAWSON PRODUCTS INC/NEW/DE/
Entity Central Index Key	0000703604
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 164,034,000
Entity Common Stock, Shares Outstanding		9,043,771

Leases Value of Lease Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Lease Assets and Liabilities [Abstract]

Schedule of Future Minimum Lease Payments [Table Text Block]

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands):



Year Ended December 31,	Operating Leases		Financing Leases		Total

2020	$	4,136	$	267	$	4,403
2021	4,169		202		4,371
2022	3,099		122		3,221
2023	1,437		61		1,498
2024	482		5		487
Thereafter	600		—		600
Total lease payments	13,923		657		14,580
Less: Interest	1,199		47		1,246
Present value of lease liabilities	$	12,724	$	610	$	13,334

Lessee, Operating Lease and Finance Lease, Liability, Maturity [Table Text Block]

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands):



Year Ended December 31,	Operating Leases		Financing Leases		Total

2020	$	4,136	$	267	$	4,403
2021	4,169		202		4,371
2022	3,099		122		3,221
2023	1,437		61		1,498
2024	482		5		487
Thereafter	600		—		600
Total lease payments	13,923		657		14,580
Less: Interest	1,199		47		1,246
Present value of lease liabilities	$	12,724	$	610	$	13,334

The Company's future minimum lease commitments, principally for facilities and equipment, as of December 31, 2018 were as follows:



	(Dollars in thousands)
Year ended December 31,	Operating Leases		Financing Lease		Capital Leases
2019	$	2,574	$	1,395	$	201
2020	2,369		1,444		155
2021	2,349		1,493		91
2022	2,008		760		11
2023	1,130		—		—
Thereafter	374		—		—
Total	$	10,804	$	5,092	$	458

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is involved in legal actions that arise in the ordinary course of business. It is the opinion of management that the resolution of any currently pending litigation will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. Environmental matter In 2012, the Company identified that a site it owns in Decatur, Alabama, contains hazardous substances in the soil and groundwater as a result of historical operations prior to the Company's ownership. The Company retained an environmental consulting firm to further investigate the contamination including the measurement and monitoring of the site and the site was enrolled in the Alabama Department of Environmental Management (“ADEM") voluntary cleanup program. A remediation plan was approved by ADEM in 2018. The plan consists of chemical injections throughout the affected area, as well as subsequent monitoring of the area for three consecutive periods. The injection process was completed in the first quarter of 2019 and the environmental consulting firm is monitoring the affected area. The Company made payments of $1.3 million in 2019 for services rendered by the environmental consulting firm. These payments were applied to the previously accrued environmental remediation liability. The Company believes the remaining environmental remediation liability classified within Accrued expenses and other liabilities on the accompanying Consolidated Balance Sheet, will be sufficient to cover the remaining cost of the plan. The Company does not expect to capitalize any amounts related to the remediation plan.

Retirement and Security Bonus Plans Retirement and Security Bonus Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
401k Employer matching contributions	$ 3,200	$ 3,000
Defined Contribution Retirement Plan Discretionary Employer Contribution	400	300
Employer contributions, profit sharing retirement plan	800	700
Retirement and Security Bonus Plans
Cash Surrender Value, Fair Value Disclosure	6,800
Security Bonus Plan	12,000
Security Bonus Liability, Current	200
Security bonus plan	$ 11,840	12,413
Security bonus plan
Retirement and Security Bonus Plans
Initial vesting percentage	25.00%
Minimum vesting period	5 years
Annual vesting percentage after initial period	5.00%
Expense recognized	$ 500	$ 600

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 593	$ 549
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	9,190,171	9,005,716
Common stock, shares outstanding	9,043,771	8,955,930
Treasury Stock, Shares	146,399	49,786

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Lawson Products, Inc. (“Lawson” or the “Company”) is a North American distributor of products and services to the industrial, commercial, institutional and government maintenance, repair and operations (“MRO”) marketplace. The Company has two operating segments. The Lawson operating segment distributes MRO products to customers primarily through a network of sales representatives offering vendor managed inventory ("VMI") service to customers throughout the United States and Canada. The Bolt operating segment distributes MRO products primarily through its 14 branches located in Western Canada. In October 2018, the Company acquired Screw Products, Inc. ("SPI"), a regional distributor of bulk industrial products to manufacturers and job shops.

Intangible assets Schedule of intangible assets (Tables)

12 Months Ended

Dec. 31, 2018

Finite-Lived Intangible Assets [Line Items]

Intangible Assets Disclosure [Text Block]

Intangible assets

The gross carrying amount and accumulated amortization by intangible asset class were as follows:



	(Dollars in thousands)							(Dollars in thousands)
	December 31, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Trade names	$	8,422	$	(2,020	)	$	6,402	$	8,090	$	(1,447	)	$	6,643
Customer relationships	7,337		(1,404		)	5,933		7,114		(645		)	6,469
	$	15,759	$	(3,424	)	$	12,335	$	15,204	$	(2,092	)	$	13,112



	(Dollars in thousands)
Year	Amortization
2020	$	1,495
2021	1,611
2022	1,406
2023	1,292
2024	1,196
Thereafter	5,335
	$	12,335

The gross carrying amount and accumulated amortization by intangible asset class were as follows:



	(Dollars in thousands)							(Dollars in thousands)
	December 31, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Trade names	$	8,422	$	(2,020	)	$	6,402	$	8,090	$	(1,447	)	$	6,643
Customer relationships	7,337		(1,404		)	5,933		7,114		(645		)	6,469
	$	15,759	$	(3,424	)	$	12,335	$	15,204	$	(2,092	)	$	13,112

Treasury Share Repurchase (Notes)	12 Months Ended
Treasury Share Repurchase (Notes)	Dec. 31, 2019
Treasury Share Repurchase [Abstract]
Treasury Stock [Text Block]	Note 19 – Stock Repurchase Program In the second quarter of 2019, our Board of Directors authorized a program in which the Company may repurchase up to $7.5 million of the Company's common stock from time to time in open market transactions, privately negotiated transactions or by other methods. In 2019, the Company purchased 32,362 shares of common stock at an average purchase price of $38.13 under the repurchase program.

Leases Lease Cash Flows (Tables)

12 Months Ended

Dec. 31, 2019

Lease Cash Flows [Line Items]

Lease Cash Flows [Table Text Block]

The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2019 are as follows (Dollars in thousands):



Cash Flow Source	Classification	Amount

Operating cash flows from operating leases	Operating activities	$	4,949
Operating cash flows from financing leases	Operating activities	30
Financing cash flows from financing leases	Financing activities	271

Subsequent to the adoption of ASC 842 in 2019 the Company recorded a non-cash transaction to establish $1.7 million of operating ROU assets, for which $1.7 million of operating lease liabilities were incurred. Also, in 2019 the Company recorded a non-cash transaction to establish $0.4 million of financing ROU assets, for which $0.4 million of financing lease liabilities were incurred.

Accrued Expenses and Other Liabilities

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following:



	(Dollars in thousands)
	December 31,
	2019		2018

Accrued stock-based compensation (stock performance rights)	$	14,908	$	13,458
Accrued compensation	9,238		10,740
Accrued and withheld taxes, other than income taxes	4,387		1,674
Accrued profit sharing	916		899
Accrued severance	778		304
Deferred revenue	648		693
Accrued health benefits	578		614
Environmental remediation accrual	20		1,376
Financing lease obligation ⁽¹⁾	—		1,207
Other	7,838		9,214
	$	39,311	$	40,179


(1)	Liabilities relating to financing lease obligations are now accounted for as lease obligations. See Note 4 - Leases for transition to ASU 2016-02.

Schedule II - Valuation and Qualifying Accounts Schedule II Valuation and Qualifying Accounts (Notes)

12 Months Ended

Dec. 31, 2018

SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]

SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

Schedule II -Valuation and Qualifying Accounts

The roll forward of valuation accounts were as follows:



	(Dollars in thousands)
Description	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions			Balance at End of Period
Allowance for doubtful accounts: ⁽¹⁾
Year ended December 31, 2019	$	549	$	623	$	(579	)	$	593
Year ended December 31, 2018	$	476	$	695	$	(622	)	$	549

Valuation allowance for deferred tax assets:
Year ended December 31, 2019	$	2,569	$	—	$	(1,334	)	$	1,235
Year ended December 31, 2018	$	2,556	$	13	$	—		$	2,569


(1)	Deductions reflect uncollected receivables written off, net of recoveries and translation adjustments.

Income Tax

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income from operations before income taxes consisted of the following:



	(Dollars in thousands)
	Year Ended December 31,
	2019		2018
United States	$	5,418	$	6,839
Canada	4,256		24
	$	9,674	$	6,863

Provision (benefit) for income taxes from operations for the years ended December 31, consisted of the following:



	(Dollars in thousands)
	Year Ended December 31,
	2019			2018
Current income tax expense:
U.S. state	$	136		$	165
Canada	291			257
Total	$	427		$	422
Deferred income tax expense (benefit):
U.S. federal	$	2,012		$	721
U.S. state	303			(464		)
Canada	(289		)	(30		)
Total	$	2,026		$	227
Total income tax expense (benefit):
U.S. federal	$	2,012		$	721
U.S. state	439			(299		)
Canada	2			227
Total	$	2,453		$	649

The reconciliation between the effective income tax rates and the statutory federal rates for operations are as follows:



	Year Ended December 31,
	2019		2018
Statutory Federal rate	21.0	%	21.0	%
Increase (decrease) resulting from:
Change in valuation allowance - current period activity	(4.5	)	3.7
Change in valuation allowance - reversal	(13.6	)	—
Capital loss	13.6		—
Stock compensation	(11.5	)	(4.5	)
Compensation deduction limitation	10.1		—
State and local taxes, net	4.5		4.7
Foreign income inclusion	3.1		(13.3	)
Meals & entertainment	1.8		2.4
Change in uncertain tax positions	(1.0	)	(1.4	)
Provision to return differences	0.2		(9.3	)
Foreign currency loss	—		2.5
Alternative minimum tax	—		1.4
Other items, net	1.7		2.3
Provision for income taxes	25.4	%	9.5	%

At December 31, 2019, the Company had $13.1 million of U.S. federal net operating loss carryforwards which are subject to expiration beginning in 2030 and $16.8 million of various state net operating loss carryforwards which expire at varying dates through 2034.

Primarily due to the cumulative losses that were incurred over several years, management determined in 2012 that it was more likely than not that the company would not be able to utilize its deferred tax assets to offset future taxable income. Valuation allowances ("VA’s") were recorded against virtually all the gross deferred tax assets at that time. At each reporting date since 2012, Lawson management has considered new evidence, both positive and negative, that could impact management’s view with regard to the realization of its deferred tax assets and the reversal of the corresponding valuation allowances. If the company was able to demonstrate that it can consistently generate income it may lead to a determination that there is sufficient positive evidence to conclude that it is more likely than not that the company will be able to utilize its deferred tax assets to offset future taxable income.

In 2017 we had continued to generate pre-tax profits and had utilized some of our net operating loss carryforwards over the previous two years and were in a three year cumulative income position in the U.S. Based on available evidence, including the utilization of $13.0 million of net operating loss carryforwards in 2017, we reached a point of increased confidence in our ability to sustain profit levels and we believed it was more likely than not that we would be able to utilize a substantial amount of our deferred tax assets to offset future taxable income. Therefore, a large portion of our U.S. valuation allowances were released in 2017.

Certain valuation allowances mostly pertaining to the deferred tax assets related to our foreign operations will remain. The Company will continue to monitor all positive and negative evidence related to the remaining valuation of deferred tax assets on a quarterly basis.

The Tax Cuts and Jobs Act was enacted into law on December 22, 2017. Subsequent to this, the Securities and Exchange Commission ("SEC") issued SAB 118 (Income Tax Accounting Implications of the Tax Cuts and Jobs Act) which allows registrants to record provisional amounts during a measurement period. The SAB allows a company to recognize provisional amounts when it does not have the necessary information prepared in reasonable detail to calculate the effect of the change in tax law. Per the SAB, a company should report provisional amounts when the accounting is not complete, but for which a reasonable estimate can be determined. Lawson included in its 2017 taxable income calculation a provisional amount of approximately $8.4 million representing previously untaxed foreign earnings and profits. The Company did not accrue any federal income tax on this amount as the company was able to utilize federal net operating losses to offset the income. The Company recently finalized the foreign earnings and profit calculation in conjunction with the finalization of the 2017 federal income tax return when all required necessary information was more readily available. A lower final foreign earnings and profits inclusion of $3.9 million resulted in a tax benefit which has a beneficial impact on the effective tax rate for the year ending December 31, 2018.

As a result of acquisitions completed in recent years, the Company recorded $20.9 million of tax deductible goodwill that may result in a tax benefit in future periods.

Deferred income tax assets and liabilities contain the following temporary differences:



	(Dollars in thousands)
	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforward	$	7,786		$	9,878
Compensation and benefits	9,947			9,598
Inventory reserve	1,589			1,769
Accounts receivable reserve	152			142
Lease assets	3,326			—
Capital loss carryforward	—			1,317
Other	146			457
Total deferred tax assets	22,946			23,161

Deferred tax liabilities:
Intangible assets	2,360			2,478
Lease liabilities	2,850			—
Property, plant and equipment	353			(20		)
Other	625			303
Total deferred liabilities	6,188			2,761

Net deferred tax assets before valuation allowance	16,758			20,400
Valuation allowance	(1,235		)	(2,569		)

Net deferred tax assets	$	15,523		$	17,831

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	(Dollars in thousands)
	December 31,
	2019			2018
Balance at beginning of year	$	3,612		$	4,255
Additions for tax positions of current year	13			43
Additions for tax positions of prior years	121			85
Reductions for tax positions of prior year	(29		)	(771		)
Lapse of statute of limitations	(475		)	—
Balance at end of year	$	3,242		$	3,612

The recognition of the unrecognized tax benefits would have a favorable effect on the effective tax rate. Due to the uncertainty of both timing and resolution of income tax examinations, the Company is unable to determine whether any amounts included in the December 31, 2019 balance of unrecognized tax benefits represent tax positions that could significantly change during the next twelve months. The unrecognized tax benefits are recorded as a component of Other liabilities in the Consolidated Balance Sheets. Interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense.

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. As of December 31, 2019, the Company was subject to U.S. federal income tax examinations for the years 2016 through 2018 and income tax examinations from various other jurisdictions for the years 2012 through 2018.

Acquisitions (Notes)

12 Months Ended

Dec. 31, 2018

Acquisitions [Abstract]

Business Combination Disclosure [Text Block]

Acquisitions

2019

The Company did not make any acquisitions in 2019.

2018

The Company completed the acquisition of Screw Products, Inc. in October 2018 for approximately $5.2 million. The purchase price was funded with cash on hand and utilization of the Company's existing credit facility. Screw Products, Inc. is a distributor of bulk industrial products to large manufacturers and job shops. The Company allocated $2.6 million of the purchase price to an intangible asset for customer relationships and $0.5 million for intangible asset for trade names. These amounts were determined by a third party valuation firm with estimated useful lives of 10 and 15 years, respectively. The excess of the purchase price over the fair values of the identifiable assets and liabilities was recorded as goodwill and represents the expected future benefit to the Company from the acquisition of Screw Products.

The Company's Lawson operating segment includes revenues of approximately $2.6 million and $0.6 million from Screw Products in 2019 and 2018, respectively.

The following table contains unaudited pro forma net sales and net income for Lawson Products assuming the Screw Products acquisition closed on January 1, 2017.



	(Dollars in thousands)
	Year Ended December 31,
	2019		2018
Net Sales
Actual	$	370,785	$	349,637
Pro forma (unaudited)	$	370,785	$	351,916

Net income
Actual	$	7,221	$	6,214
Pro forma (unaudited)	$	7,221	$	6,674

The pro forma disclosures in the table above include adjustments for, amortization of intangible assets, interest expense, tax expenses and the impact of pro forma adjustments and acquisition costs to reflect results that are more representative of the combined results of the transactions as if the Screw Products acquisition closed on January 1, 2017. This pro forma information utilizes certain estimates, is presented for illustrative purposes only and may not be indicative of the results of operation that would have actually occurred. In addition, future results may vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, such as anticipated cost savings from operating synergies.

Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Product cost of goods sold	$ 370,785	$ 349,637
Operating expenses:
Selling expenses	85,342	87,642
General and administrative expenses	102,946	92,688
Operating expenses	188,288	180,330
Operating income	9,066	9,210
Interest expense	(603)	(1,009)
Other income (expenses), net	1,211	(1,338)
Income before income taxes	(9,674)	(6,863)
Income tax expense	2,453	649
Net income	$ 7,221	$ 6,214
Earnings Per Share, Basic	$ 0.81	$ 0.70
Diluted income per share of common stock	$ 0.77	$ 0.67
Basic weighted average shares outstanding	8,968	8,909
Effect of dilutive securities outstanding	408	364
Diluted weighted average shares outstanding	9,376	9,273
Gross profit	$ 197,354	$ 189,540
Comprehensive income
Net income	7,221	6,214
Other comprehensive income, net of tax:
Adjustment for foreign currency translation	1,559	(2,382)
Comprehensive income	8,780	3,832
Product revenue
Product cost of goods sold	330,695	310,204
Service cost	155,304	145,493
Service revenue
Product cost of goods sold	40,090	39,433
Service cost	$ 18,127	$ 14,604

Leases Lease Terms and Interest Rate (Details)	Dec. 31, 2019
Lease Terms and Interest Rate [Abstract]
Operating Lease, Weighted Average Remaining Lease Term	3 years 9 months 18 days
Operating Lease, Weighted Average Discount Rate, Percent	5.00%
Finance Lease, Weighted Average Remaining Lease Term	2 years 10 months 24 days
Finance Lease, Weighted Average Discount Rate, Percent	5.50%

Commitments and Contingencies Future minimum lease payments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Operating leases:
2020	$ 4,136	$ 2,574
2021	4,169	2,369
2022	3,099	2,349
2024	482	1,130
Thereafter	600	374
Liability	13,923	10,804
Financing lease:
2020	267	1,395
2021	202	1,444
2022	122	1,493
2023	61	760
2024	5	0
Thereafter	0	0
Total	657	$ 5,092
Capital leases:
2020	4,403
2021	4,371
2022	3,221
2023	1,498
2024	487
Thereafter	600
Total	$ 14,580

Income Taxes Other information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	$ 590	$ 1,036
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	13,100
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	16,800
Undistributed Earnings of Foreign Subsidiaries		3,900	$ (8,400)
Goodwill	20,923	20,079	$ 19,614
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	(475)	0
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	3,612	4,255
Additions for tax positions of current year	13	43
Additions for tax positions of prior years	121	85
Reductions for tax positions of prior years	(29)	(771)
Balance at end of year	$ 3,242	$ 3,612

Reserve for Severance

12 Months Ended

Dec. 31, 2018

Severance Reserve [Abstract]

Reserve for Severance

Severance costs are primarily related to management realignment and reorganization. The table below reflects the activity in the Company’s reserve for severance and related payments.



	(Dollars in thousands)
	Year Ended December 31,
	2019			2018
Beginning balance	$	359		$	483
Charged to earnings	1,756			849
Cash paid	(1,206		)	(973		)
Ending balance	$	909		$	359

The majority of remaining severance liabilities outstanding as of December 31, 2019 will be paid by the end of 2020, and are included in accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets.

Restricted Cash Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Restricted Cash [Abstract]
Restricted Cash and Cash Equivalents, Current	$ 802	$ 800

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2019

Disaggregation of Revenue [Line Items]

Disaggregation of Revenue

Disaggregated revenue by product type follows:



	Unaudited
	Year Ended December 31,
Product Category	2019	2018
Fastening systems	24%	24%
Fluid power	15%	14%
Cutting tools and abrasives	13%	15%
Specialty chemicals	11%	12%
Electrical	11%	11%
Aftermarket automotive supplies	8%	8%
Safety	5%	5%
Welding and metal repair	2%	2%
Other	11%	9%
	100%	100%

Revenue Recognition (Notes)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

As part of the Company's revenue recognition analysis, it concluded that it has two separate performance obligations, and accordingly, two separate revenue streams: products and services. As a result, the Company reports two separate revenue streams and two separate costs of revenues. Under the definition of a contract as defined by ASC 606, the Company considers contracts to be created at the time an order to purchase product is agreed upon regardless of whether or not there is a written contract.

Performance Obligations

Lawson has two operating segments; the Lawson segment and the Bolt Supply segment.

The Lawson segment has two distinct performance obligations offered to its customers: a product performance obligation and a service performance obligation. Although the Company has identified that it offers its customers both a product and a service obligation, the customer only receives one invoice per transaction with no price breakout between these obligations. The Company does not price its offerings based on any breakout between these obligations.

Lawson generates revenue primarily from the sale of MRO products to its customers. Revenue related to product sales is recognized at the time that control of the product has been transferred to the customer; either at the time the product is shipped or the time the product has been received by the customer. The Company does not commit to long-term contracts to sell customers a certain minimum quantity of products.

The Lawson segment offers a VMI service proposition to its customers. A portion of these services, primarily related to stocking of product and maintenance of the MRO inventory, is provided a short period of time after control of the purchased product has been transferred to the customer. Since some components of VMI service have not been provided at the time the control of the product transfers to the customer, that portion of expected consideration is deferred until the time that those services have been provided.

The Bolt Supply segment does not provide VMI services for its customers or provide services in addition to product sales to customers. Revenue is recognized at the time that control of the product has been transferred to the customer which is either upon delivery or shipment depending on the terms of the contract.

Accounting Policy Elections

The Company treats shipping and handling costs after the control of the product has been transferred to the customer as a fulfillment cost.

Sales taxes that are imposed on our sales and collected from customers are excluded from revenues.

The Company expenses sales commissions when incurred as the amortization period is one year or less.

Certain Judgments

The Company employs certain judgments to estimate the dollar amount of revenue, and related expenses, allocated to the sale of product and service. These judgments include, among others, the percentage of customers that take advantage of the VMI services offered, the amount of revenue to be allocated to the VMI service based on the value of the service to its customers, and the amount of time after control of the product passes to the customer that the VMI service obligation is completed. It is assumed that any customer who averages placing orders at a frequency of longer than 30 days does not take advantage of the available VMI services offered. The estimate of the cost of sales is based on the estimated time spent on such activities applied to the expenses directly related to sales representatives that provide VMI services to the customer.

Disaggregated revenue by product type follows:



	Unaudited
	Year Ended December 31,
Product Category	2019	2018
Fastening systems	24%	24%
Fluid power	15%	14%
Cutting tools and abrasives	13%	15%
Specialty chemicals	11%	12%
Electrical	11%	11%
Aftermarket automotive supplies	8%	8%
Safety	5%	5%
Welding and metal repair	2%	2%
Other	11%	9%
	100%	100%

Restricted Cash Restricted Cash	12 Months Ended
Restricted Cash Restricted Cash	Dec. 31, 2018
Restricted Cash [Abstract]
Restricted Assets Disclosure [Text Block]	Restricted Cash The Company has agreed to maintain $0.8 million in a money market account as collateral for an outside party that is providing certain commercial card processing services for the Company. The Company is restricted from withdrawing this balance without the prior consent of the outside party during the term of the agreement.

Leases Lease Cash Flows (Details) $ in Thousands	12 Months Ended
Leases Lease Cash Flows (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Lease Cash Flows [Abstract]
Operating cash flows from operating leases	$ 4,949
Operating cash flow from financing leases	30
Financing cash flow from financing leases	$ 271

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2018

Acquisitions [Abstract]

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block]

The following table contains unaudited pro forma net sales and net income for Lawson Products assuming the Screw Products acquisition closed on January 1, 2017.



	(Dollars in thousands)
	Year Ended December 31,
	2019		2018
Net Sales
Actual	$	370,785	$	349,637
Pro forma (unaudited)	$	370,785	$	351,916

Net income
Actual	$	7,221	$	6,214
Pro forma (unaudited)	$	7,221	$	6,674

Leases Net Lease Cost (Tables)

12 Months Ended

Dec. 31, 2019

Net Lease Cost [Abstract]

Lease, Cost [Table Text Block]

The expenses and income generated by the leasing activity of Lawson as lessee for the year ended December 31, 2019 were as follows (Dollars in thousands):



Lease Type	Classification	Expense / (Income)

Consolidated Operating Lease Expense ⁽¹⁾	Operating expenses	$	4,729

Consolidated Financing Lease Amortization	Operating expenses	206
Consolidated Financing Lease Interest	Interest expense	30
Consolidated Financing Lease Expense		236

Sublease Income ⁽²⁾	Operating expenses	(160		)
Net Lease Cost		$	4,805

⁽¹⁾ Includes variable lease payments and short term lease expenses

⁽²⁾ Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases

The Company recorded $3.3 million of operating lease expenses for the year ended December 31, 2018.

The expenses and income generated by the leasing activity of Lawson as lessee for the year ended December 31, 2019 were as follows (Dollars in thousands):



Lease Type	Classification	Expense / (Income)

Consolidated Operating Lease Expense ⁽¹⁾	Operating expenses	$	4,729

Consolidated Financing Lease Amortization	Operating expenses	206
Consolidated Financing Lease Interest	Interest expense	30
Consolidated Financing Lease Expense		236

Sublease Income ⁽²⁾	Operating expenses	(160		)
Net Lease Cost		$	4,805

⁽¹⁾ Includes variable lease payments and short term lease expenses

⁽²⁾ Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases

The Company recorded $3.3 million of operating lease expenses for the year ended December 31, 2018.

Leases Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Schedule of Future Minimum Lease Payments [Abstract]
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 4,136	$ 2,574
Finance Lease, Liability, Payments, Due Next Twelve Months	267	1,395
Capital Leases, Future Minimum Payments Due, Next Twelve Months		201
Net Lease Liability, Payments, Remainder of Fiscal Year	4,403
Operating Leases, Future Minimum Payments, Due in Two Years	4,169	2,369
Finance Lease, Liability, Payments, Due Year Two	202	1,444
Capital Leases, Future Minimum Payments Due in Two Years		155
Net Lease Liability, Payments, Due Year Two	4,371
Operating Leases, Future Minimum Payments, Due in Three Years	3,099	2,349
Finance Lease, Liability, Payments, Due Year Three	122	1,493
Capital Leases, Future Minimum Payments Due in Three Years		91
Net Lease Liability, Payments, Due Year Three	3,221
Lessee, Operating Lease, Liability, Payments, Due Year Four	1,437	2,008
Finance Lease, Liability, Payments, Due Year Four	61	760
Capital Leases, Future Minimum Payments Due in Four Years		11
Net Lease Liability, Payments, Due Year Four	1,498
Operating Leases, Future Minimum Payments, Due in Five Years	482	1,130
Finance Lease, Liability, Payments, Due Year Five	5	0
Capital Leases, Future Minimum Payments Due in Five Years		0
Net Lease Liabilities, Payments, Due Year Five	487
Operating Leases, Future Minimum Payments, Due Thereafter	600	374
Finance Lease, Liability, Payments, Due after Year Five	0	0
Capital Leases, Future Minimum Payments Due Thereafter		0
Net Lease Liability, Payments, Due after Year Five	600
Operating Leases, Future Minimum Payments Due	13,923	10,804
Finance Lease, Liability, Payments, Due	657	5,092
Net Lease Liability, Payments Due	14,580
Operating Lease, Imputed Interest	1,199
Finance Lease, Imputed Interest	47
Net Lease Liability, Imputed Interest	1,246
Lessee, Operating Lease, Liability, Present Value	12,724
Finance Lease, Liability, Present Value	610
Net Lease Liability, Present Value	$ 13,334
Capital Leases, Future Minimum Payments Due		$ 458

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Principles of consolidation	The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts and transactions of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
Cash equivalents	The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The carrying amount of the Company’s cash equivalents at December 31, 2019 approximates fair value.
Allowance for doubtful accounts	The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filings, substantial down-grading of credit ratings), a specific reserve for bad debts is recorded against amounts due to reduce the receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes reserves for bad debts based on the Company’s historical experience of bad debt write-offs as a percent of accounts receivable outstanding.
Inventories	Inventories principally consist of finished goods stated at the lower of cost or net realizable value using the first-in-first-out method for the Lawson segment and weighted average for the Bolt segment. To reduce the cost basis of inventory to a lower of cost or net realizable value, a reserve is recorded for slow-moving and obsolete inventory based on historical experience and monitoring of current inventory activity. Estimates are used to determine the necessity of recording these reserves based on periodic detailed analysis using both qualitative and quantitative factors. As part of this analysis, the Company considers several factors including the inventories length of time on hand, historical sales, product shelf life, product life cycle, product category and product obsolescence.
Property, plant and equipment	Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed primarily by the straight-line method for buildings, machinery and equipment, furniture and fixtures and vehicles. The Company estimates useful lives of 20 to 40 years for buildings and improvements and 3 to 10 years for machinery and equipment, furniture and fixtures and vehicles. Amortization of financing and capital leases is included in depreciation expense. Depreciation expense was $3.9 million and $4.8 million for 2019 and 2018 respectively. Capitalized software is amortized over estimated useful lives of 3 to 5 years using the straight-line method. Amortization expense of capitalized software was $0.6 million and $1.1 million for 2019 and 2018 respectively.
Cash value of life insurance	The Company has invested funds in life insurance policies on certain current and former employees. The cash surrender value of the policies is invested in various investment instruments and is recorded as an asset on our consolidated balance sheet. The Company records these funds at contractual value. The change in the cash surrender value of the life insurance policies, which is recorded as a component of General and administrative expenses, is the change in the policies' contractual values.
Deferred compensation	The Company’s Executive Deferral Plan (“Deferral Plan”) allows certain executives to defer payment of a portion of their earned compensation. The deferred compensation is recorded in an Account Balance, which is a bookkeeping entry made by the Company to measure the amount due to the participant. The Account Balance is equal to the participant’s deferred compensation, adjusted for increases and/or decreases in the amount that the participant has designated to one or more bookkeeping portfolios that track the performance of certain mutual funds. Lawson adjusts the deferred compensation liability to equal the contractual value of the participants’ Account Balances. These adjustments are the changes in contractual value of the individual plans and are recorded as a component of General and administrative expenses.
Stock-based compensation	Compensation based on the share value of the Company’s common stock is valued at its fair value at the grant date and the expense is recognized over the vesting period. Fair value is re-measured each reporting period for liability-classified awards that may be redeemable in cash.
Goodwill	Goodwill — The Company had $20.9 million and $20.1 million of goodwill in 2019 and 2018, respectively. Goodwill represents the cost of business acquisitions in excess of the fair value of identifiable net tangible and intangible assets acquired. Goodwill is allocated to the appropriate reporting unit as reviewed by the Company’s segment managers. The Company reviews goodwill for potential impairment annually on December 1^st, or when an event or other circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. The first step in the multi-step process to determine if goodwill has been impaired and to what degree is to review the relevant qualitative factors that could cause the fair value of the reporting unit to decrease below the carrying value of the reporting unit. After reviewing the qualitative factors relevant to the reporting units, including conditions surrounding the industry we operate in compared to when the acquisitions were completed, the financial performance of the reporting units compared to our projected results, and macroeconomic conditions as a whole, we have determined that it is more likely than not that the fair value of the reporting units exceed their carrying value, therefore goodwill has not been impaired and no further steps need to be taken. Intangible Assets — The Company's intangible assets consist of trade names, and customer relationships. Intangible assets are amortized over weighted average 15 and 11 year estimated useful lives for trade names and customer relationships, respectively.
Impairment of long-lived assets	The Company reviews its long-lived assets, including property, plant and equipment and definite life intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment to be recognized is measured based on the amount by which the carrying amount of the asset exceeds its fair value. No triggering events or impairments occurred in 2019. In 2018 the Company determined that a triggering event had occurred when it determined that it would most likely exercise its put option on a building of a previously discontinued operation in Decatur, Alabama. Accordingly, the Company recorded an impairment charge of $0.2 million in 2018 based upon the anticipated proceeds less its carrying value.
Income taxes	Deferred tax assets or liabilities reflect temporary differences between amounts of assets and liabilities for financial and tax reporting. Such amounts are adjusted, as appropriate, to reflect changes in enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is established to offset any deferred tax assets if, based upon the available evidence, it is more likely than not (i.e. greater than 50% likely) that some or all of the deferred tax assets will not be realized. The determination of the amount of a valuation allowance to be provided on recorded deferred tax assets involves estimates regarding (1) the timing and amount of the reversal of taxable temporary differences, (2) expected future taxable income, (3) the impact of tax planning strategies and (4) the ability to carry back deferred tax assets to offset prior taxable income. In assessing the need for a valuation allowance, we consider all available positive and negative evidence, including past operating results, projections of future taxable income and the feasibility of ongoing tax planning strategies. The projections of future taxable income include a number of estimates and assumptions regarding our volume, pricing and costs. Additionally, valuation allowances related to deferred tax assets can be impacted by changes to tax laws. Significant judgment is required in determining income tax provisions as well as deferred tax asset and liability balances, including the estimation of valuation allowances and the evaluation of tax positions. Earnings from the Company's foreign subsidiaries are considered to be indefinitely reinvested. A distribution of these non-U.S. earnings in the form of dividends or otherwise would subject the Company to foreign withholding taxes and may subject the Company to U.S. federal and state taxes. The Company recognizes the benefit of tax positions when a benefit is more likely than not (i.e., greater than 50% likely) to be sustained on its technical merits. Recognized tax benefits are measured at the largest amount that is more likely than not to be sustained, based on cumulative probability, in final settlement of the position. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.
Leases
Sub-leases [Policy Text Block]
Earnings per share	Earnings per Share — Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution from the exercise or conversion of outstanding stock options, market stock units and restricted stock awards into common stock.
Foreign Currency	The accounts of foreign subsidiaries are measured using the local currency as the functional currency. All balance sheet amounts are translated into U.S. dollars using the exchange rates in effect at the applicable period end. Components of income or loss are translated using the average exchange rate for each reporting period. Gains and losses resulting from changes in the exchange rates from translation of the subsidiary accounts in local currency to U.S. dollars are reported as a component of Accumulated other comprehensive income or loss in the consolidated balance sheets. Gains and losses resulting from the effect of exchange rate changes on transactions denominated in currencies other than the functional currency are included as a component of net income or loss upon settlement of the transaction. Gains and losses resulting from intercompany transactions are included as a component of net income or loss each reporting period unless the transactions are of a long-term-investment nature and settlement is not planned or anticipated in the foreseeable future, in which case the gains and losses are recorded as a component of accumulated other comprehensive income or loss in the consolidated balance sheets.
Treasury stock	The Company repurchased 32,362 of its common stock in 2019 through its previously announced stock repurchase plan. The Company repurchased 64,252 and 16,512 shares of its common stock in 2019 and 2018, respectively from employees upon the vesting of restricted stock to offset the income taxes owed by those employees. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of stockholders’ equity. The cost of the common stock repurchased and held in treasury was $4.5 million and $0.5 million in 2019 and 2018, respectively.
Acquisitions	Acquisitions — The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions for the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill.
Use of estimates	Use of Estimates — Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported for service revenue, service cost, allowance for doubtful accounts, inventory reserves, goodwill and intangible assets valuation, and income taxes in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which revises the requirements for how an entity should measure credit losses on financial instruments. The pronouncement is effective for smaller reporting companies in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and the new guidance will be applied on a prospective basis. The Company is still evaluating the effect the adoption of the new standard will have on its financial statements.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating activities:
Net income	$ 7,221	$ 6,214
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	(5,893)	(6,855)
Stock-based compensation	(4,054)	(7,508)
Deferred income taxes	2,169	545
Changes in operating assets and liabilities:
Accounts receivable	(1,380)	(193)
Inventories	(2,308)	(2,915)
Prepaid expenses and other assets	(3,890)	(1,501)
Accounts payable and other liabilities	3,230	(2,851)
Other	667	935
Net cash provided by operating activities	9,196	20,299
Investing activities:
Purchases of property, plant and equipment	(2,028)	(2,524)
Business acquisition, net of acquired cash	0	(5,307)
Net cash used in investing activities	(2,028)	(7,831)
Financing activities:
Net payments on revolving lines of credit	(8,552)	(3,720)
Shares repurchased held in treasury	(4,527)	(523)
Payment of financing fees	(271)	(185)
Proceeds from Stock Options Exercised	33	14
Payments of Financing Costs	(573)	0
Payments of Merger Related Costs, Financing Activities	0	(76)
Net cash used in financing activities	(13,890)	(4,490)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash:
Effect of Exchange Rate on Cash and Cash Equivalents	336	(511)
Increase (decrease) in cash and cash equivalents	(6,386)	7,467
Cash and cash equivalents at end of year	5,495	11,883
Restricted Cash and Cash Equivalents, Current	802	800
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	6,297	12,683
Income Taxes Paid, Net	947	1,265
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	$ 590	$ 1,036

Income Taxes Income Tax (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income (loss) from continuing operations before income taxes

Income from operations before income taxes consisted of the following:



	(Dollars in thousands)
	Year Ended December 31,
	2019		2018
United States	$	5,418	$	6,839
Canada	4,256		24
	$	9,674	$	6,863

Components of provision (benefit) for income taxes

Provision (benefit) for income taxes from operations for the years ended December 31, consisted of the following:



	(Dollars in thousands)
	Year Ended December 31,
	2019			2018
Current income tax expense:
U.S. state	$	136		$	165
Canada	291			257
Total	$	427		$	422
Deferred income tax expense (benefit):
U.S. federal	$	2,012		$	721
U.S. state	303			(464		)
Canada	(289		)	(30		)
Total	$	2,026		$	227
Total income tax expense (benefit):
U.S. federal	$	2,012		$	721
U.S. state	439			(299		)
Canada	2			227
Total	$	2,453		$	649

Reconciliation between effective income tax rate and statutory federal rate

The reconciliation between the effective income tax rates and the statutory federal rates for operations are as follows:



	Year Ended December 31,
	2019		2018
Statutory Federal rate	21.0	%	21.0	%
Increase (decrease) resulting from:
Change in valuation allowance - current period activity	(4.5	)	3.7
Change in valuation allowance - reversal	(13.6	)	—
Capital loss	13.6		—
Stock compensation	(11.5	)	(4.5	)
Compensation deduction limitation	10.1		—
State and local taxes, net	4.5		4.7
Foreign income inclusion	3.1		(13.3	)
Meals & entertainment	1.8		2.4
Change in uncertain tax positions	(1.0	)	(1.4	)
Provision to return differences	0.2		(9.3	)
Foreign currency loss	—		2.5
Alternative minimum tax	—		1.4
Other items, net	1.7		2.3
Provision for income taxes	25.4	%	9.5	%

Deferred tax assets and liabilities

Deferred income tax assets and liabilities contain the following temporary differences:



	(Dollars in thousands)
	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforward	$	7,786		$	9,878
Compensation and benefits	9,947			9,598
Inventory reserve	1,589			1,769
Accounts receivable reserve	152			142
Lease assets	3,326			—
Capital loss carryforward	—			1,317
Other	146			457
Total deferred tax assets	22,946			23,161

Deferred tax liabilities:
Intangible assets	2,360			2,478
Lease liabilities	2,850			—
Property, plant and equipment	353			(20		)
Other	625			303
Total deferred liabilities	6,188			2,761

Net deferred tax assets before valuation allowance	16,758			20,400
Valuation allowance	(1,235		)	(2,569		)

Net deferred tax assets	$	15,523		$	17,831

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	(Dollars in thousands)
	December 31,
	2019			2018
Balance at beginning of year	$	3,612		$	4,255
Additions for tax positions of current year	13			43
Additions for tax positions of prior years	121			85
Reductions for tax positions of prior year	(29		)	(771		)
Lapse of statute of limitations	(475		)	—
Balance at end of year	$	3,242		$	3,612

Leases Lease Terms and Interest Rate (Tables)

12 Months Ended

Dec. 31, 2019

Lease Terms and Interest Rate [Abstract]

Lease Terms and Interest Rates [Table Text Block]

The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2019 are as follows:



Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate

Operating Leases	3.8	5.1%
Financing Leases	2.9	5.5%

Stock-Based Compensation Plans Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding Stock Options	80,000	83,471
Stock Options Exercised	(2,372)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 14.04
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period	(1,099)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price	$ 14.04
Allocated Share-based Compensation Expense	$ 0.1	$ 0.1
Weighted Average Exercise Price
Outstanding on December 31, 2014	$ 27.14
Outstanding on December 31, 2015	$ 27.70	$ 27.14
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 0.1

Revolving Line of Credit (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt covenants [Table Text Block]



Quarterly Financial Covenants	Requirement	Actual
EBITDA to fixed charges ratio	1.15 : 1.00	10.76 : 1.00
Total net leverage ratio	3.25 : 1.00	0.00 : 1.00

Acquisitions Purchase Price Allocation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Pro Forma [Abstract]
Payments to Acquire Businesses, Gross	$ 0	$ 5,307
Goodwill, Acquired During Period	$ 0	$ 2,086

Intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
Intangible assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Intangible Assets [Abstract]
Amortization of Intangible Assets	$ 1,300	$ 900
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 1,495

Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill [Abstract]

Schedule of Goodwill [Table Text Block]

Goodwill activity related to acquisitions is included in the table below:



	(Dollars in thousands)
	December 31,
	2019			2018
Beginning balance	$	20,079		$	19,614
Impact of foreign exchange	854			(1,452		)
Acquisition ⁽¹⁾	—			2,086
Adjustment to prior year allocation ⁽²⁾	(10		)	(169		)
Ending balance	$	20,923		$	20,079


(1)	The $2.1 million addition to goodwill in 2018 was due to the allocation of costs to acquire Screw Products.


(2)	The reduction of $0.2 million in 2018 resulted from an adjustment to goodwill created by the Bolt acquisition in 2017.

Revenue Recognition Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 1,937	$ (329)
Decrease in retained earnings	$ 86,496	$ 77,338
Operating income	$ 9,066	$ 9,210
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 1,937	$ (329)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Components of inventories
Total	$ 60,500	$ 58,215
Reserve for obsolete and excess inventory	(4,595)	(5,328)
Inventories, net	$ 55,905	$ 52,887

Leases (Notes)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Note 4 - Leases

In February 2016, the FASB established Topic ASC 842, Leases, by issuing Accounting Standards Update 2016-02. Lawson adopted ASC 842 as of January 1, 2019. The Company leases property used for distribution centers, office space, and Bolt branch locations throughout the U.S. and Canada, along with various equipment located in distribution centers and corporate headquarters. The Company is also a lessor of its Decatur, Alabama property previously used in conjunction with a discontinued operation, and was a sublessor of a portion of its corporate headquarters.

Lawson Operating Leases

Lawson MRO primarily has two types of leases: leases for real estate and leases for equipment. Operating real estate leases that have a material impact on the operations of the Company are related to the Company's distribution network and headquarters. The Company possesses several additional property leases that are month to month basis and are not material in nature. Lawson MRO does not possess any leases that have residual value guarantees. Several property leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities when the Company is reasonably certain it will renew a lease or terminate a lease.

The key change commencing on January 1, 2019 for the Company is the recognition of assets and liabilities of operating leases with lease terms longer than twelve months that were not previously capitalized on the balance sheet. The value of the Right Of Use ("ROU") assets and associated lease liabilities is calculated using the total cash payments over the course of the lease, discounted to the present value using the appropriate discount rate. The right of use asset will be amortized over its useful life. Similar to deferred rent under ASC 840, the lease liability is reduced in conjunction with the lease payments made, with adjustments made to the lease liability in order to account for non-straight line cash payments through the life of the lease.

Bolt primarily leases the real estate for its branch locations as well as its distribution center in Calgary, Alberta. Bolt possesses additional property leases that are month to month and not material in nature. Bolt property leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use asset and associated lease liability when the Company is reasonably certain it will renew a lease or terminate a lease.

Lease of McCook Distribution Facility

Upon adoption of ASC 842, the previously capitalized financing asset and lease liability for the McCook distribution facility was removed from the balance sheet and re-established as a ROU asset and a lease liability as an operating lease. The Company did not include the lease renewal periods in its assessment of the McCook lease as it did not meet the reasonably certain threshold required under ASC 842. Changes in the value of the assets and liabilities associated with the property due to adoption of ASC 842 have been accounted for as an adjustment to 2019 beginning retained earnings of $1.9 million.

Accounting Policy Elections

As part of the transition to ASC 842, the Company elected the following practical expedients:

The transitional package of practical expedients as prescribed by ASC 842. Per the practical expedient for the transition to ASC 842, the Company did not reassess expired leases, existing lease classifications or initial indirect costs for existing leases in the calculation of the right to use asset and lease liability.

The Company elected the modified retrospective method of transition, which resulted in no restatement of prior period results with the adoption impact being recorded to opening retained earnings.

The Company did not capitalize short term leases, for all asset classes defined as leases with a term of shorter than twelve months, on the balance sheet. These leases have not been transitioned to ASC 842.

As a practical expedient, the Company did not reassess the accounting for initial direct costs of current leases.

The Company elected not to use the hindsight practical expedient in determining the lease term.

The Company recognizes certain lease components and non-lease components together and not as separate parts of a lease for real estate leases. The Company will exercise this practical expedient in the future by asset class.

Significant Assumptions

The Company is required to determine a discount rate for the present value of lease payments. If the rate is not included in the lease or cannot be readily determined, the Company must estimate the incremental borrowing rate to be used for the discount rate. The Company will discount the present value of the total payments for the operating and financing leases using the incremental borrowing rate at the inception of the lease. The incremental borrowing rate will be reviewed and updated as needed.

The expenses and income generated by the leasing activity of Lawson as lessee for the year ended December 31, 2019 were as follows (Dollars in thousands):



Lease Type	Classification	Expense / (Income)

Consolidated Operating Lease Expense ⁽¹⁾	Operating expenses	$	4,729

Consolidated Financing Lease Amortization	Operating expenses	206
Consolidated Financing Lease Interest	Interest expense	30
Consolidated Financing Lease Expense		236

Sublease Income ⁽²⁾	Operating expenses	(160		)
Net Lease Cost		$	4,805

⁽¹⁾ Includes variable lease payments and short term lease expenses

⁽²⁾ Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases

The Company recorded $3.3 million of operating lease expenses for the year ended December 31, 2018.

The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands):



Lease Type	Amount

Total ROU operating lease assets ⁽¹⁾	$	10,592
Total ROU financing lease assets ⁽²⁾	654
Total lease assets	$	11,246

Total current operating lease obligation	$	3,591
Total current financing lease obligation	239
Total current lease obligations	$	3,830

Total long term operating lease obligation	$	9,133
Total long term financing lease obligation	371
Total long term lease obligation	$	9,504

⁽¹⁾ Operating lease assets are recorded net of accumulated amortization of $1.2 million as of December 31, 2019

⁽²⁾ Financing lease assets are recorded net of accumulated amortization of $0.2 million as of December 31, 2019

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands):



Year Ended December 31,	Operating Leases		Financing Leases		Total

2020	$	4,136	$	267	$	4,403
2021	4,169		202		4,371
2022	3,099		122		3,221
2023	1,437		61		1,498
2024	482		5		487
Thereafter	600		—		600
Total lease payments	13,923		657		14,580
Less: Interest	1,199		47		1,246
Present value of lease liabilities	$	12,724	$	610	$	13,334


(1)	Of the $13.9 million future minimum operating lease commitments outstanding at December 31, 2019, $3.2 million relates to a lease for the Company's headquarters which expires in March 2023


(2)	The Company has an operating lease for the McCook Facility which expires in June 2022 and includes future minimum lease payments of $4.2 million

The Company's future minimum lease commitments, principally for facilities and equipment, as of December 31, 2018 were as follows:



	(Dollars in thousands)
Year ended December 31,	Operating Leases		Financing Lease		Capital Leases
2019	$	2,574	$	1,395	$	201
2020	2,369		1,444		155
2021	2,349		1,493		91
2022	2,008		760		11
2023	1,130		—		—
Thereafter	374		—		—
Total	$	10,804	$	5,092	$	458


(1)	Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance

(2)

On January 1, 2019, the Company elected the modified retrospective method of transition to adopt the new lease standard ASC 842, which resulted in no restatement of prior period results. At December 31, 2018, prior to adoption of the new lease standard, operating lease obligations were not included as a liability on the balance sheet. Therefore, the operating lease obligations are included in the table for comparative purposes only and the total lease liability is not included as it is not applicable


(3)	The $5.1 million minimum lease obligation attributable to the McCook lease that was classified as a financing lease on December 31, 2018 was reclassified as an operating lease under the new accounting standard adopted on January 1, 2019


(4)	Lease obligations classified as capital leases on December 31, 2018 were reclassified as financing leases under the new lease standard adopted on January 1, 2019

The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2019 are as follows:



Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate

Operating Leases	3.8	5.1%
Financing Leases	2.9	5.5%

The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2019 are as follows (Dollars in thousands):



Cash Flow Source	Classification	Amount

Operating cash flows from operating leases	Operating activities	$	4,949
Operating cash flows from financing leases	Operating activities	30
Financing cash flows from financing leases	Financing activities	271

Intangible assets (Tables)

12 Months Ended

Dec. 31, 2018

Intangible Assets [Abstract]

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The estimated aggregate amortization expense for each of the next five years are as follows:



	(Dollars in thousands)
Year	Amortization
2020	$	1,495
2021	1,611
2022	1,406
2023	1,292
2024	1,196
Thereafter	5,335
	$	12,335

Intangible Assets Disclosure [Text Block]

Intangible assets

The gross carrying amount and accumulated amortization by intangible asset class were as follows:



	(Dollars in thousands)							(Dollars in thousands)
	December 31, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Trade names	$	8,422	$	(2,020	)	$	6,402	$	8,090	$	(1,447	)	$	6,643
Customer relationships	7,337		(1,404		)	5,933		7,114		(645		)	6,469
	$	15,759	$	(3,424	)	$	12,335	$	15,204	$	(2,092	)	$	13,112



	(Dollars in thousands)
Year	Amortization
2020	$	1,495
2021	1,611
2022	1,406
2023	1,292
2024	1,196
Thereafter	5,335
	$	12,335

The gross carrying amount and accumulated amortization by intangible asset class were as follows:



	(Dollars in thousands)							(Dollars in thousands)
	December 31, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Trade names	$	8,422	$	(2,020	)	$	6,402	$	8,090	$	(1,447	)	$	6,643
Customer relationships	7,337		(1,404		)	5,933		7,114		(645		)	6,469
	$	15,759	$	(3,424	)	$	12,335	$	15,204	$	(2,092	)	$	13,112

Income Taxes Reconciliation of effective tax rate (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Statutory Federal rate	21.00%	21.00%
Increase (decrease) resulting from:
State and local taxes, net	4.50%	4.70%
Change in valuation allowance	(4.50%)	3.70%
Change in deferred tax asset valuation allowance reversal	(13.60%)	0.00%
Effective Income Tax Rate Reconciliation, Capital Loss, Percent	13.60%	0.00%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent	3.10%	(13.30%)
Meals & entertainment	1.80%	2.40%
Alternative minimum tax	0.00%	1.40%
Provision to return differences	0.20%	(9.30%)
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent	0.00%	2.50%
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent	(11.50%)	(4.50%)
Effective Income Tax Rate Reconciliation, Compensation Deduction Limitation, Percent	10.10%	0.00%
Change in uncertain tax positions	(1.00%)	(1.40%)
Other items, net	1.70%	2.30%
Provision for income taxes	25.40%	9.50%

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Abstract]
Goodwill	$ 20,923	$ 20,079	$ 19,614
Goodwill, Acquired During Period	0	2,086
Goodwill, Foreign Currency Translation Gain (Loss)	854	(1,452)
Goodwill, Purchase Accounting Adjustments	$ (10)	$ (169)

Leases Net Lease Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Lease Assets and Liabilities [Line Items]

Lease Assets and Liabilities [Table Text Block]

The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands):



Lease Type	Amount

Total ROU operating lease assets ⁽¹⁾	$	10,592
Total ROU financing lease assets ⁽²⁾	654
Total lease assets	$	11,246

Total current operating lease obligation	$	3,591
Total current financing lease obligation	239
Total current lease obligations	$	3,830

Total long term operating lease obligation	$	9,133
Total long term financing lease obligation	371
Total long term lease obligation	$	9,504

⁽¹⁾ Operating lease assets are recorded net of accumulated amortization of $1.2 million as of December 31, 2019

⁽²⁾ Financing lease assets are recorded net of accumulated amortization of $0.2 million as of December 31, 2019

Lease Assets and Liabilities Disclosure [Table Text Block]

The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands):



Lease Type	Amount

Total ROU operating lease assets ⁽¹⁾	$	10,592
Total ROU financing lease assets ⁽²⁾	654
Total lease assets	$	11,246

Total current operating lease obligation	$	3,591
Total current financing lease obligation	239
Total current lease obligations	$	3,830

Total long term operating lease obligation	$	9,133
Total long term financing lease obligation	371
Total long term lease obligation	$	9,504

⁽¹⁾ Operating lease assets are recorded net of accumulated amortization of $1.2 million as of December 31, 2019

⁽²⁾ Financing lease assets are recorded net of accumulated amortization of $0.2 million as of December 31, 2019

Inventories

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories, net

Inventories, net, consisting primarily of purchased goods which are offered for resale, were as follows:



	(Dollars in thousands)
	December 31,
	2019			2018
Inventories, gross	$	60,500		$	58,215
Reserve for obsolete and excess inventory	(4,595		)	(5,328		)
Inventories, net	$	55,905		$	52,887

Reserve for Severance (Tables)

12 Months Ended

Dec. 31, 2018

Severance Reserve [Abstract]

Changes in the reserve for severance

The table below reflects the activity in the Company’s reserve for severance and related payments.



	(Dollars in thousands)
	Year Ended December 31,
	2019			2018
Beginning balance	$	359		$	483
Charged to earnings	1,756			849
Cash paid	(1,206		)	(973		)
Ending balance	$	909		$	359

Reserve for Severance Activity in reserve (Details) - Employee Severance [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reserve for severance and related payments
Balance at beginning of period	$ 359	$ 483
Charged to earnings current year	1,756	849
Cash paid and exchange rate variance	(1,206)	(973)
Balance at end of the period	$ 909	$ 359

Treasury Share Repurchase (Details) - $ / shares	12 Months Ended
Treasury Share Repurchase (Details) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Treasury Share Repurchase [Abstract]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	7,500,000
Shars Repurchased Under Share Repurchase Plan	32,362
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	184,455	84,414
Treasury Stock, Shares, Acquired	96,614	16,512
Treasury Stock Acquired, Average Cost Per Share	$ 38.13

Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued stock based compensation	$ 14,908	$ 13,458
Accrued compensation	9,238	10,740
Accrued severance	778	304
Accrued and withheld taxes, other than income taxes	4,387	1,674
Accrued Environmental Loss Contingencies, Current	20	1,376
Financing lease obligation	0	1,207
Accrued health benefits	578	614
Accrued profit sharing	916	899
Deferred Revenue	648	693
Other	7,838	9,214
Accrued Liabilities, Current	$ 39,311	$ 40,179