0000703604-21-000035 | 10-K | XBRL Viewer

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Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2020	Jan. 31, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Entity File Number	0-10546
Entity Registrant Name	LAWSON PRODUCTS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2229304
Entity Address, Address Line One	8770 W. Bryn Mawr Avenue
Entity Address, Address Line Two	Suite 900
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60631
City Area Code	773
Local Phone Number	304-5050
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	LAWS
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 141,259,000
Entity Common Stock, Shares Outstanding		9,061,039
Documents Incorporated by Reference	The following documents are incorporated into this Form 10-K by reference: Part III incorporates information by reference to the registrant’s definitive proxy statement, to be filed with the Securities and Exchange Commission within 120 days after the close of the fiscal year.
Entity Central Index Key	0000703604
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 28,393	$ 5,495
Restricted cash	998	802
Accounts receivable, less allowance for doubtful accounts of $654 and $593, respectively	44,515	38,843
Inventories, net	61,867	55,905
Miscellaneous receivables and prepaid expenses	7,289	5,377
Total current assets	143,062	106,422
Property, plant and equipment, less accumulated depreciation and amortization	15,800	16,546
Deferred income taxes	18,482	21,711
Goodwill	35,176	20,923
Cash value of life insurance	16,185	14,969
Intangible assets, net	18,503	12,335
Right of use assets	8,764	11,246
Other assets	332	277
Total assets	256,304	204,429
Current liabilities:
Accrued acquisition liability	32,673	0
Accounts payable	22,262	13,789
Lease obligation	4,568	3,830
Accrued expenses and other liabilities	38,492	39,311
Total current liabilities	97,995	56,930
Revolving line of credit	0	2,271
Security bonus plan	11,262	11,840
Lease obligation	5,738	9,504
Deferred compensation	10,461	6,370
Deferred tax liability	2,841	6,188
Other liabilities	5,585	3,325
Total liabilities	133,882	96,428
Commitments and contingencies – Note 16
Stockholders’ equity:
Preferred stock, $1 par value: Authorized - 500,000 shares, issued and outstanding - None	0	0
Common stock, $1 par value: Authorized - 35,000,000 shares Issued – 9,287,625 and 9,190,171 shares, respectively Outstanding – 9,061,039 and 9,043,771 shares, respectively	9,288	9,190
Capital in excess of par value	19,841	18,077
Retained earnings	101,609	86,496
Treasury stock – 226,586 and 146,400 shares held, respectively	(9,015)	(5,761)
Accumulated other comprehensive income (loss)	699	(1)
Total stockholders’ equity	122,422	108,001
Total liabilities and stockholders’ equity	$ 256,304	$ 204,429

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, less allowance for doubtful accounts	$ 654	$ 593
Preferred stock, par value in USD per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	35,000,000	35,000,000
Common stock, shares issued (in shares)	9,287,625	9,190,171
Common stock, shares outstanding (in shares)	9,061,039	9,043,771
Treasury stock (in shares)	226,586	146,400

Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenue	$ 351,591	$ 370,785
Cost of goods sold	165,053	173,431
Gross profit	186,538	197,354
Operating expenses:
Selling expenses	76,775	85,342
General and administrative expenses	89,213	102,946
Operating expenses	165,988	188,288
Operating income	20,550	9,066
Interest expense	(654)	(603)
Other income, net	889	1,211
Income before income taxes	(20,785)	(9,674)
Income tax expense	5,672	2,453
Net income	$ 15,113	$ 7,221
Basic income per share of common stock (in USD per share)	$ 1.68	$ 0.81
Diluted income per share of common stock (in USD per share)	$ 1.62	$ 0.77
Weighted average shares outstanding:
Basic weighted average shares outstanding (in shares)	9,020	8,968
Effect of dilutive securities outstanding (in shares)	311	408
Diluted weighted average shares outstanding (in shares)	9,331	9,376
Comprehensive income
Net income	$ 15,113	$ 7,221
Other comprehensive income, net of tax:
Adjustment for foreign currency translation	700	1,559
Comprehensive income	$ 15,813	$ 8,780

Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands

Total

Cumulative Effect, Period of Adoption, Adjustment

^[1]

Common Stock

Capital in Excess of Par Value

Retained Earnings

Cumulative Effect, Period of Adoption, Adjustment

^[1]

Treasury Stock

Accumulated Other Comprehensive Income (Loss)

Common stock, par value (in USD per share)

$ 1

Balance at beginning of year (in shares) at Dec. 31, 2018

8,955,930

Balance at beginning of year at Dec. 31, 2018

$ 99,173

$ 1,937

$ 9,006

$ 15,623

$ 77,338

$ 1,937

$ (1,234)

$ (1,560)

Net income

7,221

Adjustment for foreign currency translation

1,559

Stock-based compensation

2,638

Shares issued (in shares)

184,455

Shares issued

$ 0

$ 184

(184)

Shares repurchased held in treasury (in shares)

(32,362)

(96,614)

Shares repurchased held in treasury

$ (4,527)

(4,527)

Balance at end of year (in shares) at Dec. 31, 2019

9,190,171

9,043,771

Balance at end of year at Dec. 31, 2019

$ 108,001

$ 9,190

18,077

86,496

(5,761)

(1)

Common stock, par value (in USD per share)

$ 1

Net income

$ 15,113

15,113

Adjustment for foreign currency translation

700

Stock-based compensation

1,847

Shares issued (in shares)

97,454

Shares issued

$ 15

$ 98

(83)

Shares repurchased held in treasury (in shares)

(47,504)

(80,186)

Shares repurchased held in treasury

$ (3,254)

(3,254)

Balance at end of year (in shares) at Dec. 31, 2020

9,287,625

9,061,039

Balance at end of year at Dec. 31, 2020

$ 122,422

$ 9,288

$ 19,841

$ 101,609

$ (9,015)

$ 699

Common stock, par value (in USD per share)

$ 1

[1]	The Company adopted the ASC No.842, Leases (ASC 842) on January 1, 2019 using the modified retrospective approach. See Note 12 - Leases for further details.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating activities
Net income	$ 15,113	$ 7,221
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	(6,701)	(5,893)
Stock-based compensation	(1,479)	(4,054)
Deferred income taxes	(167)	2,169
Goodwill impairment	1,918	0
Changes in operating assets and liabilities, net of effect of acquired businesses:
Accounts receivable	1,762	(1,380)
Inventories	2,100	(2,308)
Miscellaneous receivables, prepaid expenses and other assets	(2,899)	(3,890)
Accounts payable and other liabilities	(5,788)	3,230
Other	733	667
Net cash provided by operating activities	32,528	9,196
Investing activities
Purchases of property, plant and equipment	(1,687)	(2,028)
Business acquisition, net of acquired cash	(2,300)	0
Net cash used in investing activities	(3,987)	(2,028)
Financing activities
Net payments on revolving lines of credit	(2,271)	(8,552)
Shares repurchased held in treasury	(3,254)	(4,527)
Payment of financing fees	0	(573)
Payment of financing lease principal	(257)	(271)
Proceeds from stock option exercises	15	33
Net cash used in financing activities	(5,767)	(13,890)
Effect of exchange rate changes on cash and cash equivalents	320	336
Increase (decrease) in cash and cash equivalents and restricted cash	23,094	(6,386)
Cash, cash equivalents and restricted cash at beginning of year	6,297	12,683
Cash, cash equivalents and restricted cash at end of year	29,391	6,297
Total cash, cash equivalents and restricted cash	29,391	12,683
Supplemental disclosure of cash flow information
Net noncash financing liability related to acquisition	(32,673)	0
Net cash paid for income taxes	5,377	947
Net cash paid for interest	$ 398	$ 590

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of BusinessLawson 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 reportable segments. The Lawson reportable 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 reportable segment distributes MRO products primarily through its 14 branches located in Western Canada. On August 31, 2020, the Company acquired Partsmaster, a distributor of MRO products. Partsmaster is included in the Lawson reportable segment.

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2020
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. 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. The Company also operates as a lessor and recognizes lease revenue on a straight-line basis over the life of each lease. The Company has adopted the practical expedient not to separate the non-lease components that would be within the scope of ASC 606 from the associated lease component as the relevant criteria under ASC 842 are met. 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, 2020 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 as well as Partsmaster. 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 $4.4 million and $3.9 million for 2020 and 2019 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 for 2020 and 2019 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. On August 31, 2020, the Company acquired Partsmaster from NCH Corporation, and assumed certain liabilities, including non-qualified deferred compensation plans related to Partsmaster employees. Effective December 31, 2020, Lawson accepted sponsorship of the portions of the non-qualified plans related to Partsmaster employees. The plans were frozen effective January 1, 2021. 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 in which they occur. Goodwill — The Company had $35.2 million and $20.9 million of goodwill in 2020 and 2019, 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 has four reporting units; Lawson MRO, Bolt, Screw Products, and Partsmaster. The Company reviews goodwill for potential impairment annually on December 1st, 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. During the first and second quarter of fiscal 2020, the Company identified a triggering event due to adverse changes in the business climate related to COVID-19. As a result, the Company performed interim quantitative impairment tests as of March 31, 2020 and June 30, 2020 on the goodwill in its Bolt reporting unit, which is also the Bolt reportable segment. The Company compared the estimated fair value using the income approach and the market approach of the reporting unit with its estimated book value. Based on the evaluation performed, the Company determined that goodwill was not impaired as the fair value of the reporting unit exceeded its respective carrying amounts. The income approach calculations are dependent on several subjective factors including forecasts of future revenue and earnings and the discount rate. The market approach is based on financial multiples of comparable companies. After reviewing the financial performance of the reporting units compared to our projected results, as well as macroeconomic conditions as a whole including the effect of the COVD-19 pandemic, we determined that it is more likely than not that the fair value of the goodwill generated by the acquisition of Screw Products, which reporting unit is a part of the Lawson reportable segment, had been impaired. As a result, we performed a quantitative impairment test as of December 1, 2020. The Company bases its measurement of the fair value of the reporting unit using the income approach. The income approach calculations are dependent on several subjective factors, including forecasts of future revenue and earnings and the discount rate. Related to the Lawson MRO, Bolt, and Partsmaster reporting units, the Company performed a qualitative assessment as of December 1, 2020 and determined that it was more likely than not the fair value of the reporting units exceeded the carrying value of the reporting units. Intangible Assets — The Company's intangible assets consist of trade names, and customer relationships. Intangible assets are amortized over a weighted average of 12 and 11 year estimated useful lives for trade names and customer relationships, respectively. The Company amortizes trade name intangible assets on a straight-line basis and customer relationship intangible assets on a basis consistent with their estimated economic benefit. 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 impairments occurred in 2019 or 2020. 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. Prior to acquisition, Partsmaster participated in a leasing program where they actively leased parts washer machines to customers. The Company will continue the leasing program for the foreseeable future. These leases are classified as operating leases. The leased machines are recognized as fixed assets on the Company's consolidated balance sheet and the leasing revenue is recognized on a straight line basis. 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 years ended December 31, 2020 and 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. 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 foreign 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 47,504 and 32,362 of its common stock in 2020 and 2019, respectively, through its previously announced stock repurchase plan. The Company repurchased 32,682 and 64,252 shares of its common stock in 2020 and 2019, 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 $3.3 million and $4.5 million in 2020 and 2019, 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.

Acquisition

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Acquisition

On August 31, 2020, the Company acquired Partsmaster from NCH Corporation. Partsmaster is a leading maintenance, MRO solutions provider that serves approximately 16,000 customers with approximately 200 sales representatives. The acquisition was made primarily to expand the Company's sales coverage, expand product lines, add experienced sales representatives, and leverage the Company's infrastructure.

The purchase price was $35.3 million in cash plus the assumption of certain liabilities. The Company paid $2.3 million of the purchase price in cash at closing and will pay the remaining $33.0 million in May 2021. The payment obligation has been discounted to its present value and was recognized as an accrued acquisition liability of $32.4 million at the time of acquisition. As of December 31, 2020, the discounted present value of the $33.0 million due in May 2021 is $32.7 million and is recorded in the Company's consolidated balance sheet as an accrued acquisition liability. Payment has been guaranteed under the Purchase Agreement, and includes the issuance of a $33.0 million irrevocable standby letter of credit. The Company will satisfy the payment obligation with cash on hand with any remaining portion using its existing credit facility.

The purchase price of the acquisition was allocated to the fair value of Partsmasters' assets and liabilities on the acquisition date. The fair market value appraisals of the majority of the assets and liabilities was determined by a third party valuation firm using management estimates and assumptions including intangible assets of $5.0 million for customer relationships and $2.8 million for trade names, and their estimated useful lives of 10 and 5 years, respectively. The $15.8 million allocated to goodwill reflects the purchase price less the fair market value of the identifiable net assets. The goodwill is attributable to the workforce of the acquired business and the significant synergies expected to arise after Lawson's acquisition of Partsmaster. The entire amount of goodwill is expected to be deductible for tax purposes.

The appropriate fair values of the assets acquired and liabilities assumed are based on estimates and assumptions. The Company continues to review preliminary estimates of various assets and liabilities including, but not limited to, pre-acquisition employee compensation liabilities and potential adjustments of certain accounts receivable balances as defined under the purchase agreement. These preliminary estimates and assumptions could change during the purchase price measurement period as the Company finalizes the valuations of the assets acquired and liabilities assumed. The Company recorded the fair value of accounts receivable after consideration of an estimate of cash flows not expected to be collected which was $0.4 million.

Partsmaster contributed $22.6 million of revenue and $0.8 million of operating income in the four months of 2020 post-acquisition.

A summary of the initial purchase price allocation of the acquisition is as follows (Dollars in thousands):


Cash paid and payable and liabilities assumed
Cash paid and payable	$	34,523
Accounts payable and accrued expenses	4,086
Lease obligation	620
Deferred compensation	2,938
	$	42,167
Fair value of assets acquired
Goodwill	$	15,816
Inventories	7,797
Accounts receivable	7,706
Customer relationships	4,961
Trade names	2,775
Property, plant and equipment	2,121
Right of use asset	620
Other assets	371
	$	42,167

The following table contains unaudited pro forma revenue and net income for Lawson Products assuming the Partsmaster acquisition closed on January 1, 2019.


	(Unaudited)
	Pro Forma Year Ended December 31,
	2020	2019

Revenue	396,679	435,486

Net Income	16,535	7,277

The pro forma disclosures in the table above include adjustments for amortization of intangible assets, implied interest expense and acquisition costs to reflect results as if the acquisition of Partsmaster had closed on January 1, 2019 rather than on the actual acquisition date. This pro forma information utilizes certain estimates, is presented for illustrative purposes only and is not intended to be indicative of the actual results of operation. 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 positive or negative events that may occur after the acquisition, such as anticipated cost savings from operating synergies.

Revenue Recognition

12 Months Ended

Dec. 31, 2020

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. 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, including the Partsmaster acquisition, 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.

In previous financial statements, the Company presented the disaggregated components of total revenue: product revenue and service revenue, along with the cost of sales associated with each of these revenue streams as the service revenues exceeded 10% of consolidated sales. Since the Company qualifies as a smaller reporting company, the Company has elected to discontinue disclosure of the disaggregated components of revenue and cost of sales in its consolidated statements of income and comprehensive income and in the related notes to the consolidated financial statements. For the twelve months ended December 31, 2019, service revenue of $40.1 million was reported as service revenue which have now been combined as reported within total revenue.

Disaggregated revenue by product type follows:


	Unaudited
	Year Ended December 31,
Product Category	2020	2019
Fastening systems	22%	24%
Cutting tools and abrasives	14%	13%
Fluid power	13%	15%
Specialty chemicals	11%	11%
Electrical	10%	11%
Aftermarket automotive supplies	7%	8%
Safety	6%	5%
Welding and metal repair	2%	2%
Other	15%	11%
	100%	100%

Lawson as Lessor

Prior to acquisition, Partsmaster leased parts washer machines to customers through its Torrents leasing program. The Torrents leasing program comprised a minor portion of the Partsmaster business. The Company will continue the leasing program for the foreseeable future. These leases are classified as operating leases. The leased machines are recognized as fixed assets on the Company's consolidated balance sheet and the leasing revenue is recognized on a straight line basis. The Torrents machine leasing program generated $0.9 million of revenue in 2020 post-acquisition. The Company has adopted the practical expedient not to separate the non-lease components that would be within the scope of ASC 606 from the associated lease component as the relevant criteria under ASC 842 are met.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Restricted Cash	12 Months Ended
Restricted Cash	Dec. 31, 2020
Restricted Cash [Abstract]
Restricted Cash	Restricted CashThe 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 has also agreed to maintain $0.2 million in a guaranteed investment certificate as collateral for an outside party that is providing certain commercial credit card services for Bolt. The Company is restricted from withdrawing this balance without the prior consent of the outside party during the term of the agreement.

Inventories, net

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventories, net

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


	(Dollars in thousands)
	December 31,
	2020		2019
Inventories, gross	$	67,137	$	60,500
Reserve for obsolete and excess inventory	(5,270)		(4,595)
Inventories, net	$	61,867	$	55,905

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Components of property, plant and equipment were as follows:


	(Dollars in thousands)
	December 31,
	2020		2019
Land	$	2,650	$	2,625
Buildings and improvements	15,765		15,356
Machinery and equipment	26,814		24,509
Capitalized software	23,013		22,136
Furniture and fixtures	5,725		5,673
Vehicles	151		155
Construction in progress	752		683
	74,870		71,137
Accumulated depreciation and amortization	(59,070)		(54,591)
	$	15,800	$	16,546

Goodwill

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

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


	(Dollars in Thousands)
	Goodwill By Reportable Segment
	Lawson		Bolt		Total
Beginning balance January 1, 2019	$	7,174	$	12,905	$	20,079
Impact of foreign exchange	205		649		854
Adjustment to prior year allocation	(10)		—		(10)
Balance at December 31, 2019	7,369		$	13,554	20,923

Impact of foreign exchange	85		270		355
Acquisition (1)	15,816		—		15,816
Impairment (2)	(1,918)		—		(1,918)
Balance at December 31, 2020	$	21,352	$	13,824	$	35,176

(1) The $15.8 million addition to goodwill in 2020 was due to the preliminary allocation of the purchase price to acquire Partsmaster.

(2) The Company performed a quantitative goodwill impairment analysis as of December 1, 2020 for the Screw Products reporting unit. The Company engaged a third party valuation firm to determine the value of the Screw Products reporting unit, and determined that the carrying value of the net assets exceeded the fair value of the reporting unit, and accordingly, recognized an impairment charge of $1.9 million.

Although the Company believes the projected future operating results and cash flows and related estimates regarding the values were based on reasonable assumptions, it is reasonably possible that estimates made may be materially and adversely impacted in the future as a result of the COVID-19 pandemic, including impairment losses related to goodwill.

Intangible assets

12 Months Ended

Dec. 31, 2020

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible assets

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


	(Dollars in thousands)						(Dollars in thousands)
	December 31, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Trade names	$	11,289	$	(2,733)	$	8,556	$	8,422	$	(2,020)	$	6,402
Customer relationships	12,349		(2,402)		9,947		7,337		(1,404)		5,933
	$	23,638	$	(5,135)	$	18,503	$	15,759	$	(3,424)	$	12,335

Amortization expense of $1.7 million and $1.3 million related to intangible assets was recorded in General and administrative expenses for 2020 and 2019, respectively. The estimated aggregate amortization expense for each of the next five years are as follows:


	(Dollars in thousands)
Year	Amortization
2021	$	2,662
2022	2,457
2023	2,343
2024	2,247
2025	1,983
Thereafter	6,811
	$	18,503

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income from operations before income taxes consisted of the following:


	(Dollars in thousands)
	Year Ended December 31,
	2020		2019
United States	$	16,226	$	5,418
Canada	4,559		4,256
	$	20,785	$	9,674

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


	(Dollars in thousands)
	Year Ended December 31,
	2020		2019
Current income tax expense:
U.S. federal	$	3,858	$	—
U.S. state	710		136
Canada	1,288		291
Total	$	5,856	$	427
Deferred income tax expense (benefit):
U.S. federal	$	236	$	2,012
U.S. state	52		303
Canada	(472)		(289)
Total	$	(184)	$	2,026
Total income tax expense (benefit):
U.S. federal	$	4,094	$	2,012
U.S. state	762		439
Canada	816		2
Total	$	5,672	$	2,453

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


	Year Ended December 31,
	2020		2019
Statutory Federal rate	21.0	%	21.0	%
Increase (decrease) resulting from:
Change in valuation allowance - current period activity	(2.2)		(4.5)
Change in valuation allowance - reversal	—		(13.6)
Capital loss	—		13.6
Stock compensation	(2.0)		(11.5)
Compensation deduction limitation	1.5		10.1
State and local taxes, net	3.8		4.5
Foreign income inclusion	—		3.1
Meals & entertainment	0.6		1.8
Change in uncertain tax positions	4.6		(1.0)
Provision to return differences	(0.1)		0.2
Other items, net	0.1		1.7
Provision for income taxes	27.3	%	25.4	%

At December 31, 2020, the Company had $7.2 million of U.S. federal net operating loss carryforwards which are subject to expiration beginning in 2030 and $7.7 million of various state net operating loss carryforwards which expire at varying dates through 2034.

Certain valuation allowances pertaining to the deferred tax assets related to our Canadian operations remain as of December 31, 2020. Lawson's Canadian operations have recently moved into a three-year cumulative income position. Based on the history of our Canadian operations and their multi-year pre-tax losses through 2018, the Company does not believe there is sufficient positive evidence at this time to consider reversing the $1.2 million valuation allowance. While forecasts may show future positive pre-tax income, future projected income is the least objective of the positive sources of evidence as

the projections are inherently subjective and not yet demonstrated. The uncertainty of the continuing pandemic may further affect our Canadian business. Based on this, the Company will maintain its valuation allowances related to Canada as of December 31, 2020. The Company will continue to monitor all positive and negative evidence regarding the Canadian operations and will re-assess our position on a regular basis.

As a result of acquisitions completed in recent years, the Company recorded $35.2 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,
	2020		2019
Deferred tax assets:
Net operating loss carryforward	$	5,431	$	7,786
Compensation and benefits	10,980		9,947
Inventory reserve	1,772		1,589
Accounts receivable reserve	167		152
Leased assets	1,061		3,326
Other	329		146
Total deferred tax assets	19,740		22,946

Deferred tax liabilities:
Intangible assets	1,948		2,360
Lease liabilities	1,366		2,850
Property, plant and equipment	(975)		353
Other	503		625
Total deferred liabilities	2,842		6,188

Net deferred tax assets before valuation allowance	16,898		16,758
Valuation allowance	(1,257)		(1,235)

Net deferred tax assets	$	15,641	$	15,523

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


	(Dollars in thousands)
	December 31,
	2020		2019
Balance at beginning of year	$	3,242	$	3,612
Additions for tax positions of current year	15		13
Additions for tax positions of prior years	1,413		121
Reductions for tax positions of prior year	—		(29)
Lapse of statute of limitations	(984)		(475)
Balance at end of year	$	3,686	$	3,242

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, 2020 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, 2020, the Company was subject to U.S. federal income tax examinations for the years 2017 through 2019 and income tax examinations from various other jurisdictions for the years 2013 through 2019.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Accrued Expenses and Other Liabilities

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following:


	(Dollars in thousands)
	December 31,
	2020		2019

Accrued stock-based compensation (stock performance rights)	$	14,437	$	14,908
Accrued compensation	9,794		9,238
Accrued and withheld taxes, other than income taxes	3,788		4,387
Accrued profit sharing	240		916
Accrued severance	1,103		778
Deferred revenue	822		648
Accrued health benefits	732		578
Other	7,576		7,858
	$	38,492	$	39,311

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

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 expenses and income generated by the leasing activity of Lawson as lessee for the years ended December 31, 2020 and December 31, 2019 were as follows:


		(Dollars in Thousands)
		Year Ended December 31,
Lease Type	Classification	2020		2019

Consolidated Operating Lease Expense (1)	Operating expenses	$	4,999	$	4,729

Consolidated Financing Lease Amortization	Operating expenses	226		206
Consolidated Financing Lease Interest	Interest expense	28		30
Consolidated Financing Lease Expense		254		236

Sublease Income (2)	Operating expenses	—		(160)
Net Lease Cost		$	5,253	$	4,805

(1) Includes short term lease expense, which is immaterial

(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 value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2020 were as follows:


	(Dollars in Thousands)
	Year Ended December 31,
Lease Type	2020		2019

Total ROU operating lease assets (1)	$	8,246	$	10,592
Total ROU financing lease assets (2)	518		654
Total lease assets	$	8,764	$	11,246

Total current operating lease obligation	$	4,360	$	3,591
Total current financing lease obligation	208		239
Total current lease obligations	$	4,568	$	3,830

Total long term operating lease obligation	$	5,498	$	9,133
Total long term financing lease obligation	240		371
Total long term lease obligation	$	5,738	$	9,504

(1) Operating lease assets are recorded net of accumulated amortization of $5.9 million and $1.2 million as of December 31, 2020 and December 31, 2019, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.4 million and $0.2 million as of December 31, 2020 and December 31, 2019, respectively

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2020 were as follows (Dollars in thousands):


Year Ended December 31,	Operating Leases		Financing Leases		Total

2021	$	4,719	$	219	$	4,938
2022	3,212		143		3,355
2023	1,471		89		1,560
2024	509		25		534
2025	168		—		168
Thereafter	462		—		462
Total lease payments	10,541		476		11,017
Less: Interest	683		28		711
Present value of lease liabilities	$	9,858	$	448	$	10,306

(1) Of the $10.5 million future minimum operating lease commitments outstanding at December 31, 2020, $2.2 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 $2.6 million

The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2020 are as follows:


Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate

Operating Leases	2.9	5.2%
Financing Leases	2.5	5.3%

The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2020 are as follows (Dollars in thousands):

Cash Flow Source

Classification

Amount

Operating cash flows from operating leases

Operating activities

4,256

Operating cash flows from financing leases

Operating activities

Financing cash flows from financing leases

Financing activities

257

McCook Lease Adjustment

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.

Lawson as Lessor

Leases

The expenses and income generated by the leasing activity of Lawson as lessee for the years ended December 31, 2020 and December 31, 2019 were as follows:


		(Dollars in Thousands)
		Year Ended December 31,
Lease Type	Classification	2020		2019

Consolidated Operating Lease Expense (1)	Operating expenses	$	4,999	$	4,729

Consolidated Financing Lease Amortization	Operating expenses	226		206
Consolidated Financing Lease Interest	Interest expense	28		30
Consolidated Financing Lease Expense		254		236

Sublease Income (2)	Operating expenses	—		(160)
Net Lease Cost		$	5,253	$	4,805

(1) Includes short term lease expense, which is immaterial

(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 value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2020 were as follows:


	(Dollars in Thousands)
	Year Ended December 31,
Lease Type	2020		2019

Total ROU operating lease assets (1)	$	8,246	$	10,592
Total ROU financing lease assets (2)	518		654
Total lease assets	$	8,764	$	11,246

Total current operating lease obligation	$	4,360	$	3,591
Total current financing lease obligation	208		239
Total current lease obligations	$	4,568	$	3,830

Total long term operating lease obligation	$	5,498	$	9,133
Total long term financing lease obligation	240		371
Total long term lease obligation	$	5,738	$	9,504

(1) Operating lease assets are recorded net of accumulated amortization of $5.9 million and $1.2 million as of December 31, 2020 and December 31, 2019, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.4 million and $0.2 million as of December 31, 2020 and December 31, 2019, respectively

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2020 were as follows (Dollars in thousands):


Year Ended December 31,	Operating Leases		Financing Leases		Total

2021	$	4,719	$	219	$	4,938
2022	3,212		143		3,355
2023	1,471		89		1,560
2024	509		25		534
2025	168		—		168
Thereafter	462		—		462
Total lease payments	10,541		476		11,017
Less: Interest	683		28		711
Present value of lease liabilities	$	9,858	$	448	$	10,306

(1) Of the $10.5 million future minimum operating lease commitments outstanding at December 31, 2020, $2.2 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 $2.6 million

The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2020 are as follows:


Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate

Operating Leases	2.9	5.2%
Financing Leases	2.5	5.3%

The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2020 are as follows (Dollars in thousands):

Cash Flow Source

Classification

Amount

Operating cash flows from operating leases

Operating activities

4,256

Operating cash flows from financing leases

Operating activities

Financing cash flows from financing leases

Financing activities

257

McCook Lease Adjustment

Lawson as Lessor

Prior to acquisition, Partsmaster leased parts washer machines to customers through its Torrents leasing program. The Torrents leasing program comprised a minor portion of the Partsmaster business. The Company will continue the leasing program for the foreseeable future. These leases are classified as operating leases. The leased machines are recognized as fixed assets on the Company's consolidated balance sheet and the leasing revenue is recognized on a straight line basis. The Torrents machine leasing program generated $0.9 million of revenue in 2020 post-acquisition. The Company has adopted the practical expedient not to separate non-lease components that would be within the scope of ASC 606 from the associated lease components as the relevant criteria under ASC 842 are met.

Credit Agreement

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

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, 2020, the Company had no outstanding balances under its revolving line of credit facility and additional borrowing availability of $66.0 million. The carrying amount of the Company’s debt at December 31, 2020 approximates its fair value. The weighted average interest rate was 2.65% in 2020. The Company had $34.0 million of outstanding letters of credit as of December 31, 2020 primarily related to the acquisition of Partsmaster.

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

4.77 : 1.00

Total net leverage ratio

3.25 : 1.00

0.60 : 1.00

The Company was in compliance with all financial covenants as of December 31, 2020.

In the third quarter of 2020, the Company entered into an amendment to the Credit Agreement which among other items increased the letter of credit basket from $15.0 million to $40.0 million until August 31, 2021 and authorized the Company to incur indebtedness in an amount up to $36.0 million for the acquisition of Partsmaster.

Accrued Acquisition Liability	12 Months Ended
Accrued Acquisition Liability	Dec. 31, 2020
Business Combinations [Abstract]
Accrued Acquisition Liability	Accrued Acquisition LiabilityOn August 31, 2020, Lawson acquired Partsmaster from NCH Corporation. As part of the purchase price the Company agreed to pay $33.0 million in May 2021. The payment obligation has been discounted to its present value using an implied interest rate of 1.8% and is recognized as a current liability of $32.7 million in the Company's consolidated balance sheet. Payment has been guaranteed under the Purchase Agreement which includes the issuance of a $33.0 million irrevocable standby letter of credit. The accrued acquisition liability is included as outstanding debt in the quarterly financial covenants. See Note 13 - Credit Agreement for further details.

Reserve for Severance

12 Months Ended

Dec. 31, 2020

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,
	2020		2019
Beginning balance	$	909	$	359
Charged to earnings	2,077		1,756
Cash paid	(1,735)		(1,206)
Ending balance	$	1,251	$	909

The majority of remaining severance liabilities outstanding as of December 31, 2020 will be paid by the end of 2021, and are included in accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2020
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. At December 31, 2020 the Company has less than $0.1 million accrued for potential monitoring costs. The Company does not expect to capitalize any amounts related to the remediation plan.

Retirement and Security Bonus Plans	12 Months Ended
Retirement and Security Bonus Plans	Dec. 31, 2020
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 $2.9 million and $3.2 million for the years ended December 31, 2020 and 2019, 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 $0.2 million and $0.4 million in 2020 and 2019, 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 $0.2 million and $0.8 million for the years ended December 31, 2020 and 2019, 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 $0.3 million and $0.5 million for the years ended December 31, 2020 and 2019, respectively. The security bonus plan is partially funded by a $6.9 million investment in the cash surrender value in life insurance of certain employees. Of the $11.5 million total liability, $0.3 million is classified as a current liability as of December 31, 2020, and the remaining $11.3 million is classified as long-term.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [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, 2020, the Company had approximately 247,000 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, 2020, 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, 2020 was $26.88 per SPR using the following assumptions:


Expected volatility			46.5% to 66.9%
Risk-free rate of return			0.1% to 0.2%
Expected term (in years)			0.5 to 3.5
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.

A compensation benefit of less than $0.1 million was recorded as a reduction to General and administrative expense for the year ended December 31, 2020. Compensation expenses of $14.9 million was recorded in General and administrative expenses for the year ended December 31, 2019. Cash in the amount of $0.5 million and $13.4 million was paid for SPR exercises in 2020 and 2019, respectively. A liability of $14.4 million reflecting the estimated fair value of future pay-outs is 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, 2020 was as follows:


	Number of SPRs	Weighted Average Exercise Price
Outstanding on December 31, 2019	599,861	$	26.56
Exercised	(18,861)	16.48
Outstanding on December 31, 2020	581,000	26.88

Exercisable on December 31, 2020	573,086	$	26.72

The SPRs outstanding had an intrinsic value of $14.6 million as of December 31, 2020. Unrecognized compensation cost related to non-vested SPRs was $0.2 million at December 31, 2020, which will be recognized over a weighted average period of 1.0 years. During the year ended December 31, 2020, 43,397 SPRs with a fair value of $1.3 million vested. At December 31, 2020, the weighted average remaining contractual term was 2.0 years for all outstanding SPRs and 1.8 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 $1.2 million and $1.3 million related to the RSAs were recorded in General and administrative expenses for 2020 and 2019, respectively. Activity related to the Company’s RSAs during the year ended December 31, 2020 was as follows:


			Restricted Stock Awards
Outstanding on December 31, 2019			90,909
Granted			18,371
Exchanged for common shares			(63,481)
Outstanding on December 31, 2020			45,799

As of December 31, 2020, 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 2020 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 $0.7 million and $1.2 million related to MSUs were recorded in General and administrative expenses in the years ended December 31, 2020 and 2019, respectively. Activity related to the Company’s MSUs during the year ended December 31, 2020 was as follows:


	Number of Market Stock Units	Maximum Shares Potentially Issuable
Outstanding on December 31, 2019	139,643	199,303
Granted	21,648	32,472
Exchanged for stock	(24,035)	(36,052)
Outstanding on December 31, 2020	137,256	195,723

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 2020 and 2019. There was no unrecognized compensation related to stock options as of December 31, 2020 as all compensation plans that included stock options were fully vested. Upon vesting, stock options are recognized as a component of equity. There were 80,000 stock options outstanding on December 31, 2020 with a weighted average exercise price of $27.70.

Performance Awards ("PAs")

The Company issued 10,852 PAs to key employees that cliff vest on December 31, 2022. PAs are exchangeable for the Company's common stock ranging from zero to 16,278, or the equivalent amount in cash, based upon the achievement of certain financial performance metrics. Expenses of $0.1 million related to the PAs were recorded in General and administrative expenses for the year ended December 31, 2020.

Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

The Company's operating segments, Lawson and Bolt, also represent its reportable segments because of differences in the businesses' financial characteristics and the methods they employ to deliver product to customers. The results of the Company's 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,
	2020		2019
Net sales
Lawson	$	312,803	$	329,367
Bolt	38,788		41,418
Consolidated total	$	351,591	$	370,785

Gross profit
Lawson	$	171,258	$	181,567
Bolt	15,280		15,787
Consolidated total	$	186,538	$	197,354

Operating Income
Lawson	$	17,715	$	6,483
Bolt	2,835		2,583
Consolidated total	20,550		9,066

Interest expense	(654)		(603)
Other income, net	889		1,211
Income before income taxes	$	20,785	$	9,674

Capital expenditures
Lawson	$	1,529	$	1,522
Bolt	158		506
Consolidated total	$	1,687	$	2,028

Depreciation and amortization
Lawson	$	5,343	$	4,757
Bolt	1,358		1,136
Consolidated total	$	6,701	$	5,893

Total assets
Lawson	$	221,490	$	168,803
Bolt	43,533		44,174
Investment in Subsidiary	(8,719)		(8,548)
Consolidated total	$	256,304	$	204,429

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


	(Dollars in Thousands)
	Year Ended December 31,
	2020		2019
Net sales (1)
United States	$	283,261	$	295,675
Canada	68,330		75,110
Consolidated total	$	351,591	$	370,785

Long-lived assets (2)
United States	$	44,395	$	25,478
Canada	34,180		35,849
Consolidated total	$	78,575	$	61,327

(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.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Stock Repurchase Program	12 Months Ended
Stock Repurchase Program	Dec. 31, 2020
Disclosure of Repurchase Agreements [Abstract]
Stock Repurchase Program	Note 20 – Stock Repurchase Program In 2019, the Company's 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 2020 and 2019, the Company purchased 47,504 and 32,362 shares of common stock at an average purchase price of $36.93 and $38.13, respectively, under the repurchase program. At December 31, 2020, the Company had approximately $4.5 million available under the repurchase plan.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsDuring the twelve months ended December 31, 2020 the Company purchased approximately $0.9 million of inventory from a company owned by an immediate relative of a Board member at fair market value. The Company paid substantially all of the amount owed in the third and fourth quarters and therefore immaterial remaining liabilities exist as of December 31, 2020.

COVID-19 Risks and Uncertainties	12 Months Ended
COVID-19 Risks and Uncertainties	Dec. 31, 2020
Risks and Uncertainties [Abstract]
COVID-19 Risks and Uncertainties	COVID-19 Risks and Uncertainties There is substantial uncertainty as to the overall effect the COVID-19 pandemic will have on the results of the Company for 2021 and beyond. Various events related to COVID-19 have resulted in lost revenue to our Company, limitations on our ability to source high demand products, limitations on our sales force to perform certain functions due to state or federal stay-at-home orders, slow-down of customer demand for our products and limitations of some customers to pay us on a timely basis. On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security ("CARES") Act to provide certain relief as a result of the COVID-19 outbreak. The Company has elected to defer the employer side social security payments in accordance with the CARES Act. The total amount deferred is $3.5 million, with $1.7 million expected to be paid in 2021 and the remainder in 2022. The Company will continue to evaluate how the provisions of the CARES Act will impact its financial position, results of operations and cash flows. The Company has also utilized the Canadian Emergency Wage Subsidy ("CEWS") Act for both Lawson Canada and Bolt for assistance with hourly employee costs. The CEWS is a program that provides a subsidy of certain eligible wages commencing March 15, 2020 through December 31, 2020 subject to meeting certain criteria. During 2020 the Company recorded $1.4 million in subsidies from the CEWS program which is recognized as a reduction to selling, general and administrative expenses in the consolidated statement of income and comprehensive income. In the first quarter of 2020, the government of the state of Illinois defined essential businesses, allowing Lawson to operate during the pandemic. A change in this status could result in the temporary closure of our business. Additionally the COVID-19 pandemic could result in a temporary closure of any or all of our distribution facilities or the Bolt branch locations, which would negatively impact our operations. Other disruptions to our supply chain such as reduced capacity or temporary shutdowns of freight carriers could also negatively impact Company performance. The pandemic is negatively impacting sales and operations currently and may negatively impact future financial results, liquidity and overall performance of the Company. Additionally, it is reasonably possible that estimates made in the financial statements may be materially and adversely impacted in the future as a result of these conditions, including delay in payment of receivables, impairment losses related to goodwill and other long-lived assets, and inability to utilize deferred tax assets. The Lawson MRO business model relies upon customer interaction as well as a consistent schedule of onsite visits by our sales representatives to customer locations. The Bolt business model relies on foot traffic in its branch locations. The onset of the COVID-19 pandemic, as well as social distancing guidelines and government mandated shelter in place orders, have negatively impacted the ability of our sales reps to visit our customers and for foot traffic to return to our Bolt branch locations, resulting in an overall negative impact on our business. The second quarter 2020 financial performance of the Company was substantially negatively impacted as state and local governments throughout the United States and Canada imposed strict COVID-19 related restrictions, including shutdowns of nonessential businesses and stay-at-home orders, particularly in April. These restrictions were relaxed in May and June, and were further relaxed throughout the third quarter. The economic climate in the third quarter improved as non-essential businesses reopened in both limited capacity and full capacity. The relaxed restrictions resulted in increased customer contact and more consistent customer visits for Lawson MRO sales representatives, as well as increased customer visits to Bolt branch locations. The relaxed restrictions continued in the fourth quarter as well, which allowed for continued sequential improvement in operating and financial performance. Despite the improved economic climate, the Company continues to be negatively impacted by the COVID-19 pandemic and the various federal, state and local restrictions enacted to combat the pandemic. In the fourth quarter of 2020, the U.S. Food and Drug Administration approved certain vaccines that have demonstrated effectiveness in preventing the spread of the COVID-19 virus. However, it is projected that the production, distribution and administration of the vaccine to a sufficient percentage of the population to significantly minimize the future effect of the pandemic will not be reached until mid-2021. The Company has taken several steps to mitigate the potential negative impacts of COVID-19. The actions taken included, but are not limited to, furloughing employees, reducing base salaries for a period of time, canceling travel and award trips, temporarily consolidating its Suwanee distribution center operations into the McCook facility, eliminating non-critical capital expenditures and eliminating various positions throughout the Company. In the third and fourth quarters the Company brought back various previously furloughed employees. The Company reopened the Suwanee distribution center in a reduced capacity in the third quarter as overall business activity increased. The Company will continue to closely monitor the operating environment and will take appropriate actions to protect the safety for its employees, customers and suppliers.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

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, 2020	$	593	$	578	$	(517)	$	654
Year ended December 31, 2019	$	549	$	623	$	(579)	$	593

Valuation allowance for deferred tax assets:
Year ended December 31, 2020	$	1,235	$	22	$	—	$	1,257
Year ended December 31, 2019	$	2,569	$	—	$	(1,334)	$	1,235

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

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2020
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. 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. 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. The Company also operates as a lessor and recognizes lease revenue on a straight-line basis over the life of each lease. The Company has adopted the practical expedient not to separate the non-lease components that would be within the scope of ASC 606 from the associated lease component as the relevant criteria under ASC 842 are met.
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, 2020 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 as well as Partsmaster. 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 $4.4 million and $3.9 million for 2020 and 2019 respectively. Capitalized software is amortized over estimated useful lives of 3 to 5 years using the straight-line method.
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 in which they occur.
Goodwill and Intangible Assets	Intangible Assets — The Company's intangible assets consist of trade names, and customer relationships. Intangible assets are amortized over a weighted average of 12 and 11 year estimated useful lives for trade names and customer relationships, respectively. The Company amortizes trade name intangible assets on a straight-line basis and customer relationship intangible assets on a basis consistent with their estimated economic benefit.
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 impairments occurred in 2019 or 2020.
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. Prior to acquisition, Partsmaster participated in a leasing program where they actively leased parts washer machines to customers. The Company will continue the leasing program for the foreseeable future. These leases are classified as operating leases. The leased machines are recognized as fixed assets on the Company's consolidated balance sheet and the leasing revenue is recognized on a straight line basis.
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 years ended December 31, 2020 and 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.
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 foreign 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 accounts for treasury stock using the cost method and includes treasury stock as a component of stockholders’ equity.
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.

Acquisition (Tables)

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Summary of Purchase Price Allocation to Acquisition

A summary of the initial purchase price allocation of the acquisition is as follows (Dollars in thousands):


Cash paid and payable and liabilities assumed
Cash paid and payable	$	34,523
Accounts payable and accrued expenses	4,086
Lease obligation	620
Deferred compensation	2,938
	$	42,167
Fair value of assets acquired
Goodwill	$	15,816
Inventories	7,797
Accounts receivable	7,706
Customer relationships	4,961
Trade names	2,775
Property, plant and equipment	2,121
Right of use asset	620
Other assets	371
	$	42,167

Unaudited Pro Forma Revenue and Net Income for Lawson Products Assuming the Partsmaster Acquisition Closed

The following table contains unaudited pro forma revenue and net income for Lawson Products assuming the Partsmaster acquisition closed on January 1, 2019.


	(Unaudited)
	Pro Forma Year Ended December 31,
	2020	2019

Revenue	396,679	435,486

Net Income	16,535	7,277

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Disaggregated revenue by product type follows:


	Unaudited
	Year Ended December 31,
Product Category	2020	2019
Fastening systems	22%	24%
Cutting tools and abrasives	14%	13%
Fluid power	13%	15%
Specialty chemicals	11%	11%
Electrical	10%	11%
Aftermarket automotive supplies	7%	8%
Safety	6%	5%
Welding and metal repair	2%	2%
Other	15%	11%
	100%	100%

Inventories, net (Tables)

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Components of Inventories

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


	(Dollars in thousands)
	December 31,
	2020		2019
Inventories, gross	$	67,137	$	60,500
Reserve for obsolete and excess inventory	(5,270)		(4,595)
Inventories, net	$	61,867	$	55,905

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019
Land	$	2,650	$	2,625
Buildings and improvements	15,765		15,356
Machinery and equipment	26,814		24,509
Capitalized software	23,013		22,136
Furniture and fixtures	5,725		5,673
Vehicles	151		155
Construction in progress	752		683
	74,870		71,137
Accumulated depreciation and amortization	(59,070)		(54,591)
	$	15,800	$	16,546

Goodwill (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Activity Related to Acquisitions

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


	(Dollars in Thousands)
	Goodwill By Reportable Segment
	Lawson		Bolt		Total
Beginning balance January 1, 2019	$	7,174	$	12,905	$	20,079
Impact of foreign exchange	205		649		854
Adjustment to prior year allocation	(10)		—		(10)
Balance at December 31, 2019	7,369		$	13,554	20,923

Impact of foreign exchange	85		270		355
Acquisition (1)	15,816		—		15,816
Impairment (2)	(1,918)		—		(1,918)
Balance at December 31, 2020	$	21,352	$	13,824	$	35,176

(1) The $15.8 million addition to goodwill in 2020 was due to the preliminary allocation of the purchase price to acquire Partsmaster.

Intangible assets (Tables)

12 Months Ended

Dec. 31, 2020

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Gross Carrying Amount and Accumulated Amortization by Intangible Asset Class

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


	(Dollars in thousands)						(Dollars in thousands)
	December 31, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Trade names	$	11,289	$	(2,733)	$	8,556	$	8,422	$	(2,020)	$	6,402
Customer relationships	12,349		(2,402)		9,947		7,337		(1,404)		5,933
	$	23,638	$	(5,135)	$	18,503	$	15,759	$	(3,424)	$	12,335

Schedule of Estimated Aggregate Amortization Expense for Next Five Years

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


	(Dollars in thousands)
Year	Amortization
2021	$	2,662
2022	2,457
2023	2,343
2024	2,247
2025	1,983
Thereafter	6,811
	$	18,503

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income From Continuing Operations Before Income Taxes

Income from operations before income taxes consisted of the following:


	(Dollars in thousands)
	Year Ended December 31,
	2020		2019
United States	$	16,226	$	5,418
Canada	4,559		4,256
	$	20,785	$	9,674

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,
	2020		2019
Current income tax expense:
U.S. federal	$	3,858	$	—
U.S. state	710		136
Canada	1,288		291
Total	$	5,856	$	427
Deferred income tax expense (benefit):
U.S. federal	$	236	$	2,012
U.S. state	52		303
Canada	(472)		(289)
Total	$	(184)	$	2,026
Total income tax expense (benefit):
U.S. federal	$	4,094	$	2,012
U.S. state	762		439
Canada	816		2
Total	$	5,672	$	2,453

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,
	2020		2019
Statutory Federal rate	21.0	%	21.0	%
Increase (decrease) resulting from:
Change in valuation allowance - current period activity	(2.2)		(4.5)
Change in valuation allowance - reversal	—		(13.6)
Capital loss	—		13.6
Stock compensation	(2.0)		(11.5)
Compensation deduction limitation	1.5		10.1
State and local taxes, net	3.8		4.5
Foreign income inclusion	—		3.1
Meals & entertainment	0.6		1.8
Change in uncertain tax positions	4.6		(1.0)
Provision to return differences	(0.1)		0.2
Other items, net	0.1		1.7
Provision for income taxes	27.3	%	25.4	%

Deferred Tax Assets and Liabilities

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


	(Dollars in thousands)
	December 31,
	2020		2019
Deferred tax assets:
Net operating loss carryforward	$	5,431	$	7,786
Compensation and benefits	10,980		9,947
Inventory reserve	1,772		1,589
Accounts receivable reserve	167		152
Leased assets	1,061		3,326
Other	329		146
Total deferred tax assets	19,740		22,946

Deferred tax liabilities:
Intangible assets	1,948		2,360
Lease liabilities	1,366		2,850
Property, plant and equipment	(975)		353
Other	503		625
Total deferred liabilities	2,842		6,188

Net deferred tax assets before valuation allowance	16,898		16,758
Valuation allowance	(1,257)		(1,235)

Net deferred tax assets	$	15,641	$	15,523

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,
	2020		2019
Balance at beginning of year	$	3,242	$	3,612
Additions for tax positions of current year	15		13
Additions for tax positions of prior years	1,413		121
Reductions for tax positions of prior year	—		(29)
Lapse of statute of limitations	(984)		(475)
Balance at end of year	$	3,686	$	3,242

Accrued Expenses and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019

Accrued stock-based compensation (stock performance rights)	$	14,437	$	14,908
Accrued compensation	9,794		9,238
Accrued and withheld taxes, other than income taxes	3,788		4,387
Accrued profit sharing	240		916
Accrued severance	1,103		778
Deferred revenue	822		648
Accrued health benefits	732		578
Other	7,576		7,858
	$	38,492	$	39,311

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease Cost

The expenses and income generated by the leasing activity of Lawson as lessee for the years ended December 31, 2020 and December 31, 2019 were as follows:


		(Dollars in Thousands)
		Year Ended December 31,
Lease Type	Classification	2020		2019

Consolidated Operating Lease Expense (1)	Operating expenses	$	4,999	$	4,729

Consolidated Financing Lease Amortization	Operating expenses	226		206
Consolidated Financing Lease Interest	Interest expense	28		30
Consolidated Financing Lease Expense		254		236

Sublease Income (2)	Operating expenses	—		(160)
Net Lease Cost		$	5,253	$	4,805

(1) Includes short term lease expense, which is immaterial

(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 weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2020 are as follows:


Lease Type	Weighted Average Term in Years	Weighted Average Interest Rate

Operating Leases	2.9	5.2%
Financing Leases	2.5	5.3%

The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2020 are as follows (Dollars in thousands):

Cash Flow Source

Classification

Amount

Operating cash flows from operating leases

Operating activities

4,256

Operating cash flows from financing leases

Operating activities

Financing cash flows from financing leases

Financing activities

257

Schedule of Assets and Liabilities

The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2020 were as follows:


	(Dollars in Thousands)
	Year Ended December 31,
Lease Type	2020		2019

Total ROU operating lease assets (1)	$	8,246	$	10,592
Total ROU financing lease assets (2)	518		654
Total lease assets	$	8,764	$	11,246

Total current operating lease obligation	$	4,360	$	3,591
Total current financing lease obligation	208		239
Total current lease obligations	$	4,568	$	3,830

Total long term operating lease obligation	$	5,498	$	9,133
Total long term financing lease obligation	240		371
Total long term lease obligation	$	5,738	$	9,504

(1) Operating lease assets are recorded net of accumulated amortization of $5.9 million and $1.2 million as of December 31, 2020 and December 31, 2019, respectively

(2) Financing lease assets are recorded net of accumulated amortization of $0.4 million and $0.2 million as of December 31, 2020 and December 31, 2019, respectively

Value of Lease Liabilities Generated by Leasing Activities of Lawson

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2020 were as follows (Dollars in thousands):


Year Ended December 31,	Operating Leases		Financing Leases		Total

2021	$	4,719	$	219	$	4,938
2022	3,212		143		3,355
2023	1,471		89		1,560
2024	509		25		534
2025	168		—		168
Thereafter	462		—		462
Total lease payments	10,541		476		11,017
Less: Interest	683		28		711
Present value of lease liabilities	$	9,858	$	448	$	10,306

(1) Of the $10.5 million future minimum operating lease commitments outstanding at December 31, 2020, $2.2 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 $2.6 million

Value of Lease Liabilities Generated by Leasing Activities of Lawson

The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2020 were as follows (Dollars in thousands):


Year Ended December 31,	Operating Leases		Financing Leases		Total

2021	$	4,719	$	219	$	4,938
2022	3,212		143		3,355
2023	1,471		89		1,560
2024	509		25		534
2025	168		—		168
Thereafter	462		—		462
Total lease payments	10,541		476		11,017
Less: Interest	683		28		711
Present value of lease liabilities	$	9,858	$	448	$	10,306

(1) Of the $10.5 million future minimum operating lease commitments outstanding at December 31, 2020, $2.2 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 $2.6 million

Credit Agreement (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Debt Covenants

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

4.77 : 1.00

Total net leverage ratio

3.25 : 1.00

0.60 : 1.00

Reserve for Severance (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019
Beginning balance	$	909	$	359
Charged to earnings	2,077		1,756
Cash paid	(1,735)		(1,206)
Ending balance	$	1,251	$	909

Stock-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Valuation Assumptions

The weighted-average estimated value of SPRs outstanding as of December 31, 2020 was $26.88 per SPR using the following assumptions:


Expected volatility			46.5% to 66.9%
Risk-free rate of return			0.1% to 0.2%
Expected term (in years)			0.5 to 3.5
Expected annual dividend			$0

Activity Related to SPRs

Activity related to the Company’s SPRs during the year ended December 31, 2020 was as follows:


	Number of SPRs	Weighted Average Exercise Price
Outstanding on December 31, 2019	599,861	$	26.56
Exercised	(18,861)	16.48
Outstanding on December 31, 2020	581,000	26.88

Exercisable on December 31, 2020	573,086	$	26.72

Activity Related to RSAs

Activity related to the Company’s RSAs during the year ended December 31, 2020 was as follows:


			Restricted Stock Awards
Outstanding on December 31, 2019			90,909
Granted			18,371
Exchanged for common shares			(63,481)
Outstanding on December 31, 2020			45,799

MSU Rollforward

Activity related to the Company’s MSUs during the year ended December 31, 2020 was as follows:


	Number of Market Stock Units	Maximum Shares Potentially Issuable
Outstanding on December 31, 2019	139,643	199,303
Granted	21,648	32,472
Exchanged for stock	(24,035)	(36,052)
Outstanding on December 31, 2020	137,256	195,723

Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of Financial Information for the Company's Reportable Segments

Financial information for the Company's reportable segments follows:


	(Dollars in thousands)
	Year Ended December 31,
	2020		2019
Net sales
Lawson	$	312,803	$	329,367
Bolt	38,788		41,418
Consolidated total	$	351,591	$	370,785

Gross profit
Lawson	$	171,258	$	181,567
Bolt	15,280		15,787
Consolidated total	$	186,538	$	197,354

Operating Income
Lawson	$	17,715	$	6,483
Bolt	2,835		2,583
Consolidated total	20,550		9,066

Interest expense	(654)		(603)
Other income, net	889		1,211
Income before income taxes	$	20,785	$	9,674

Capital expenditures
Lawson	$	1,529	$	1,522
Bolt	158		506
Consolidated total	$	1,687	$	2,028

Depreciation and amortization
Lawson	$	5,343	$	4,757
Bolt	1,358		1,136
Consolidated total	$	6,701	$	5,893

Total assets
Lawson	$	221,490	$	168,803
Bolt	43,533		44,174
Investment in Subsidiary	(8,719)		(8,548)
Consolidated total	$	256,304	$	204,429

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,
	2020		2019
Net sales (1)
United States	$	283,261	$	295,675
Canada	68,330		75,110
Consolidated total	$	351,591	$	370,785

Long-lived assets (2)
United States	$	44,395	$	25,478
Canada	34,180		35,849
Consolidated total	$	78,575	$	61,327

(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.

Description of Business (Details)	12 Months Ended
Description of Business (Details)	Dec. 31, 2020 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Depreciation	$ 4,400,000	$ 3,900,000
Amortization expense of capitalized software	600,000	600,000
Goodwill	35,176,000	20,923,000	$ 20,079,000
Impairment of long-lived assets	$ 0	$ 0
Shares paid for tax withholding for share based compensation (in shares)	32,682	64,252
Cost of treasury stock repurchased	$ 3,254,000	$ 4,527,000
Treasury stock acquired (in shares)	47,504	32,362
Treasury Stock
Property, Plant and Equipment [Line Items]
Cost of treasury stock repurchased	$ 3,254,000	$ 4,527,000
Trade names
Property, Plant and Equipment [Line Items]
Weighted average amortization period (in years)	12 years
Customer relationships
Property, Plant and Equipment [Line Items]
Weighted average amortization period (in years)	11 years
Minimum \| Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	20 years
Minimum \| Machinery and equipment, furniture and fixtures, and vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Minimum \| Capitalized software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Maximum \| Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	40 years
Maximum \| Machinery and equipment, furniture and fixtures, and vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	10 years
Maximum \| Capitalized software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (in years)	5 years

Acquisition - Narrative (Details) customer in Thousands, $ in Thousands		1 Months Ended	3 Months Ended	12 Months Ended
	Aug. 31, 2020 USD ($) customer sale_representative	May 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Payments for purchase				$ 2,300	$ 0
Accrued acquisition liability			$ 32,673	32,673	0
Goodwill			35,176	35,176	$ 20,923	$ 20,079
Partsmaster
Business Acquisition [Line Items]
Number of customers \| customer	16
Number of sales representatives \| sale_representative	200
Purchase price	$ 35,300
Payments for purchase	2,300
Accrued acquisition liability	32,400		32,700	$ 32,700
Letters of credit	33,000
Goodwill	15,816
Fair value of accounts receivable not expected to be collected	400
Revenue since acquisition			22,600
Operating income since acquisition			$ 800
Partsmaster \| Customer relationships
Business Acquisition [Line Items]
Intangibles	$ 4,961
Intangibles weighted average life (in years)	10 years
Partsmaster \| Trade names
Business Acquisition [Line Items]
Intangibles	$ 2,775
Intangibles weighted average life (in years)	5 years
Partsmaster \| Forecast
Business Acquisition [Line Items]
Payments for purchase		$ 33,000
Accrued acquisition liability		$ 32,700

Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Aug. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair value of assets acquired
Goodwill	$ 35,176		$ 20,923	$ 20,079
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Right Of Use Assets		$ 620
Partsmaster
Cash paid and payable and liabilities assumed
Cash paid and payable		34,523
Accounts payable and accrued expenses		4,086
Lease obligation		620
Deferred compensation		2,938
Cash paid and payable and liabilities assumed		42,167
Fair value of assets acquired
Goodwill		15,816
Inventories		7,797
Accounts receivable		7,706
Property, plant and equipment		2,121
Other assets		371
Fair value of assets acquired		42,167
Partsmaster \| Customer relationships
Fair value of assets acquired
Intangibles		4,961
Partsmaster \| Trade names
Fair value of assets acquired
Intangibles		$ 2,775

Acquisition - Pro Forma Results (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Business Combinations [Abstract]
Revenue	$ 396,679	$ 435,486
Net Income	$ 16,535	$ 7,277

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	4 Months Ended	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		$ 351,591	$ 370,785
Revenue generated by operating leases acquired in acquisition	$ 900
Service revenue
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue			$ 40,100

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue Recognition - Disaggregation of Revenue (Details) - Product Concentration Risk - Revenue from Contract with Customer Benchmark	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	100.00%	100.00%
Fastening systems
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	22.00%	24.00%
Cutting tools and abrasives
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	14.00%	13.00%
Fluid power
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	13.00%	15.00%
Specialty chemicals
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	11.00%	11.00%
Electrical
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	10.00%	11.00%
Aftermarket automotive supplies
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	7.00%	8.00%
Safety
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	6.00%	5.00%
Welding and metal repair
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	2.00%	2.00%
Other
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	15.00%	11.00%

Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Restricted Cash [Abstract]
Restricted cash	$ 998	$ 802
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	998	$ 802
Money Market Funds
Restricted Cash [Abstract]
Restricted cash	800
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	800
Guaranteed Investment Certificate
Restricted Cash [Abstract]
Restricted cash	200
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 200

Inventories, net (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Components of inventories
Inventories, gross	$ 67,137	$ 60,500
Reserve for obsolete and excess inventory	(5,270)	(4,595)
Inventories, net	$ 61,867	$ 55,905

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 74,870	$ 71,137
Accumulated depreciation and amortization	(59,070)	(54,591)
Property, plant and equipment, less accumulated depreciation and amortization	15,800	16,546
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,650	2,625
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	15,765	15,356
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	26,814	24,509
Capitalized software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	23,013	22,136
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	5,725	5,673
Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	151	155
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 752	$ 683

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 20,923	$ 20,079
Impact of foreign exchange	355	854
Adjustment to prior year allocation		(10)
Acquisition	15,816
Impairment	(1,918)	0
Goodwill, ending balance	35,176	20,923
Lawson
Goodwill [Roll Forward]
Goodwill, beginning balance	7,369	7,174
Impact of foreign exchange	85	205
Adjustment to prior year allocation		(10)
Acquisition	15,816
Impairment	(1,918)
Goodwill, ending balance	21,352	7,369
Bolt
Goodwill [Roll Forward]
Goodwill, beginning balance	13,554	12,905
Impact of foreign exchange	270	649
Adjustment to prior year allocation		0
Acquisition	0
Impairment	0
Goodwill, ending balance	$ 13,824	$ 13,554

Intangible assets - Schedule of Intangibles (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 23,638	$ 15,759
Accumulated Amortization	(5,135)	(3,424)
Net Carrying Value	18,503	12,335
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,289	8,422
Accumulated Amortization	(2,733)	(2,020)
Net Carrying Value	8,556	6,402
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,349	7,337
Accumulated Amortization	(2,402)	(1,404)
Net Carrying Value	$ 9,947	$ 5,933

Intangible assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortization expense	$ 1.7	$ 1.3

Intangible assets - Future Amortization Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Intangible Assets, Net (Excluding Goodwill) [Abstract]
2021	$ 2,662
2022	2,457
2023	2,343
2024	2,247
2025	1,983
Thereafter	6,811
Net Carrying Value	$ 18,503	$ 12,335

Income Taxes - Components of Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income (loss) from continuing operations before income taxes
United States	$ 16,226	$ 5,418
Canada	4,559	4,256
Income before income taxes	$ 20,785	$ 9,674

Income Taxes - Provision (Benefit) for Income taxes from Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Current income tax expense:
U.S. federal	$ 3,858	$ 0
U.S. state	710	136
Canada	1,288	291
Total	5,856	427
Deferred income tax expense (benefit):
U.S. federal	236	2,012
U.S. state	52	303
Canada	(472)	(289)
Total	(184)	2,026
Total income tax expense (benefit):
U.S. federal	4,094	2,012
U.S. state	762	439
Canada	816	2
Total	$ 5,672	$ 2,453

Income Taxes - Reconciliation of Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Statutory Federal rate	21.00%	21.00%
Increase (decrease) resulting from:
Change in valuation allowance - current period activity	(2.20%)	(4.50%)
Change in valuation allowance - reversal	0.00%	(13.60%)
Capital loss	0.00%	13.60%
Stock compensation	(2.00%)	(11.50%)
Compensation deduction limitation	1.50%	10.10%
State and local taxes, net	3.80%	4.50%
Foreign income inclusion	0.00%	3.10%
Meals & entertainment	0.60%	1.80%
Change in uncertain tax positions	4.60%	(1.00%)
Provision to return differences	(0.10%)	0.20%
Other items, net	0.10%	1.70%
Provision for income taxes	27.30%	25.40%

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
US federal net operating loss carryforwards	$ 7,200
Various state net operating loss carryforwards	7,700
Valuation allowance	1,257	$ 1,235
Tax deductible goodwill	35,176	$ 20,923	$ 20,079
Tax deductible goodwill	$ 35,200

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Net operating loss carryforward	$ 5,431	$ 7,786
Compensation and benefits	10,980	9,947
Inventory reserve	1,772	1,589
Accounts receivable reserve	167	152
Leased assets	1,061	3,326
Other	329	146
Total deferred tax assets	19,740	22,946
Deferred tax liabilities:
Intangible assets	1,948	2,360
Lease liabilities	1,366	2,850
Property, plant and equipment	(975)	353
Other	503	625
Total deferred liabilities	2,842	6,188
Net deferred assets before valuation allowance	16,898	16,758
Valuation allowance	(1,257)	(1,235)
Net deferred assets	$ 15,641	$ 15,523

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 3,242	$ 3,612
Additions for tax positions of current year	15	13
Additions for tax positions of prior years	1,413	121
Reductions for tax positions of prior year	0	(29)
Lapse of statute of limitations	(984)	(475)
Balance at end of year	$ 3,686	$ 3,242

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Accrued stock-based compensation (stock performance rights)	$ 14,437	$ 14,908
Accrued compensation	9,794	9,238
Accrued and withheld taxes, other than income taxes	3,788	4,387
Accrued profit sharing	240	916
Accrued severance	1,103	778
Deferred revenue	822	648
Accrued health benefits	732	578
Other	7,576	7,858
Total accrued liabilities	$ 38,492	$ 39,311

Leases - Net Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Consolidated Operating Lease Expense	$ 4,999	$ 4,729
Consolidated Financing Lease Amortization	226	206
Consolidated Financing Lease Interest	28	30
Consolidated Financing Lease Expense	254	236
Sublease Income	0	(160)
Net Lease Cost	$ 5,253	$ 4,805

Leases - Net Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Total ROU operating lease assets	$ 8,246	$ 10,592
Total ROU financing lease assets	518	654
Total lease assets	8,764	11,246
Total current operating lease obligation	4,360	3,591
Total current financing lease obligation	208	239
Total current lease obligations	4,568	3,830
Total long term operating lease obligation	5,498	9,133
Total long term financing lease obligation	240	371
Total long term lease obligation	5,738	9,504
Operating lease accumulated depreciation	5,900	1,200
Finance lease accumulated depreciation	$ 400	$ 200

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Operating Leases
2021	$ 4,719
2022	3,212
2023	1,471
2024	509
2025	168
Thereafter	462
Total lease payments	10,541
Less: Interest	683
Present value of lease liabilities	9,858
Financing Leases
2021	219
2022	143
2023	89
2024	25
2025	0
Thereafter	0
Total lease payments	476
Less: Interest	28
Present value of lease liabilities	448
Total
2021	4,938
2022	3,355
2023	1,560
2024	534
2025	168
Thereafter	462
Total lease payments	11,017
Less: Interest	711
Present value of lease liabilities	$ 10,306
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	laws:LeaseLiabilityCurrent	laws:LeaseLiabilityCurrent
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	laws:LeaseLiabilityCurrent	laws:LeaseLiabilityCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	laws:LeaseLiabilityNoncurrent	laws:LeaseLiabilityNoncurrent
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	laws:LeaseLiabilityNoncurrent	laws:LeaseLiabilityNoncurrent
Lessee, Lease, Description [Line Items]
Lease liability	$ 10,541
Company Headquarters
Operating Leases
Total lease payments	2,200
Lessee, Lease, Description [Line Items]
Lease liability	2,200
McCook facility
Operating Leases
Total lease payments	2,600
Lessee, Lease, Description [Line Items]
Lease liability	$ 2,600

Leases - Terms and Interest Rate (Details)	Dec. 31, 2020
Leases [Abstract]
Operating Leases, Weighted Average Term (in years)	2 years 10 months 24 days
Operating Leases, Weighted Average Interest Rate (as percent)	5.20%
Finance Leases, Weighted Average Term (in years)	2 years 6 months
Finance Leases, Weighted Average Interest Rate (as percent)	5.30%

Leases - Cash Flows (Details) $ in Thousands	12 Months Ended
Leases - Cash Flows (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 4,256
Operating cash flows from financing leases	28
Financing cash flows from financing leases	$ 257

Leases - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Dec. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Operating ROU Asset		$ 8,246	$ 10,592
Operating lease liabilities		9,858
Financing lease liabilities		$ 448
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating ROU Asset	$ 1,700
Operating lease liabilities	1,700
Financing lease ROU asset	400
Financing lease liabilities	$ 400

Credit Agreement - Narrative (Details) - Line of Credit	12 Months Ended
Credit Agreement - Narrative (Details) - Line of Credit	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Aug. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)
Line of Credit Facility [Line Items]
Defaults	$ 5,000,000.0
Weighted average interest rate	2.65%
Letters of credit	$ 34,000,000.0
Allowable indebtedness for acquisition		$ 36,000,000.0
Maximum
Line of Credit Facility [Line Items]
Total net leverage ratio	3.75
Required Minimum Value
Line of Credit Facility [Line Items]
EBITDA to fixed charges ratio	1.15
Total net leverage ratio	3.25
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility, borrowing capacity	$ 100,000,000.0
Revolving line of credit facility, outstanding	0
Line of credit facility, remaining borrowing capacity	66,000,000.0
Letter of Credit
Line of Credit Facility [Line Items]
Credit facility, borrowing capacity	$ 150,000,000.0
Maximum borrowing capacity			$ 40,000,000.0	$ 15,000,000.0

Credit Agreement - Quarterly Financial Covenants (Details) - Line of Credit	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Required Minimum Value
Line of Credit Facility [Line Items]
EBITDA to fixed charges ratio	1.15
Total net leverage ratio	3.25
Actual Value
Line of Credit Facility [Line Items]
EBITDA to fixed charges ratio	4.77
Total net leverage ratio		0.60

Accrued Acquisition Liability (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Aug. 31, 2020	May 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Payments for purchase			$ 2,300	$ 0
Implied interest rate			1.80%
Accrued acquisition liability			$ 32,673	$ 0
Partsmaster
Business Acquisition [Line Items]
Payments for purchase	$ 2,300
Accrued acquisition liability	$ 32,400		$ 32,700
Forecast \| Partsmaster
Business Acquisition [Line Items]
Payments for purchase		$ 33,000
Accrued acquisition liability		$ 32,700

Reserve for Severance - Activity in Reserve (Details) - Employee Severance - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Reserve for severance and related payments
Balance at beginning of period	$ 909	$ 359
Charged to earnings	2,077	1,756
Cash paid	(1,735)	(1,206)
Balance at end of the period	$ 1,251	$ 909

Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Accrued environmental matter costs	$ 0.1

Retirement and Security Bonus Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
401k Employer matching contributions	$ 2,900	$ 3,200
Defined defined contribution retirement investment plans contributions	200	400
Employer contributions, profit sharing retirement plan	200
Retirement and Security Bonus Plans
Cash surrender value in life insurance of certain employees	6,900
Total liability	133,882	96,428
Current liabilities	$ 97,995	56,930
Security bonus plan
Retirement and Security Bonus Plans
Initial vesting percentage	25.00%
Minimum vesting period	five
Annual vesting percentage after initial period	5.00%
Expense recognized	$ 300	$ 500
Total liability	11,500
Current liabilities	300
Long-term liabilities	$ 11,300

Stock-Based Compensation Plans - Plan Administration (Details) - 2009 Equity Compensation Plan	12 Months Ended
	Dec. 31, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	247,000
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation plan maximum share grants per year (in shares)	125,000
Share-based Payment Arrangement, Nonemployee \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation plan maximum share grants per year (in shares)	20,000

Stock-Based Compensation Plans - Stock Performance Rights (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Valuation assumptions:
Cash paid out for SPR excercises	$ 500,000	$ 13,400,000
Liability reflecting estimated fair value of future pay-outs	$ 14,437,000	14,908,000
Stock Performance Rights
Stock Performance Rights
Weighted average estimated value of SPRs outstanding (in USD per share)	$ 26.88
Valuation assumptions:
Expected volatility, minimum, percent	46.50%
Expected volatility, maximum, percent	66.90%
Risk-free rate of return, minimum	0.10%
Risk-free rate of return, maximum	0.20%
Expected annual dividend	$ 0
Stock options expense		$ 14,900,000
Liability reflecting estimated fair value of future pay-outs	$ 14,400,000
Number of SPRs
Outstanding on December 31, 2019 (in shares)	599,861
Exercised (in shares)	(18,861)
Outstanding on December 31, 2020 (in shares)	581,000	599,861
Exercisable on December 31, 2020 (in shares)	573,086
Weighted Average Exercise Price
Outstanding on December 31, 2019 (in USD per share)	$ 26.88	$ 26.56
Exercised (in USD per share)		16.48
Outstanding on December 31, 2020 (in USD per share)		26.88
Exercisable on December 31, 2020 (in USD per share)		$ 26.72
SPRs outstanding, intrinsic value	$ 14,600,000
Total unrecognized compensation cost	$ 200,000
Unrecognized cost, period for recognition (in years)	1 year
Shares vested (in shares)	43,397
Vested in period, fair value	$ 1,300,000
Weighted average remaining contractual term, SPRs outstanding (in years)	2 years
Weighted average remaining contractual term, SPRs exercisable (in years)	1.8 years
Stock Performance Rights \| Minimum
Stock Performance Rights
Expiration period (in years)	7 years
Award vesting period (in years)	1 year
Valuation assumptions:
Expected term (in years)	6 months
Stock Performance Rights \| Maximum
Stock Performance Rights
Award vesting period (in years)	3 years
Valuation assumptions:
Expected term (in years)	3 years 6 months

Stock-Based Compensation Plans - Restricted Stock Awards (Details) - Restricted stock awards - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Restricted Stock Awards
Outstanding on December 31, 2019 (in shares)	90,909
Granted (in shares)	18,371
Exchanged for common shares (in shares)	(63,481)
Outstanding on December 31, 2020 (in shares)	45,799	90,909
Total unrecognized compensation cost	$ 0.8
Unrecognized cost, period for recognition (in years)	1 year
Weighted average grant date fair value (in USD per share)	$ 36.68
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expense	$ 1.2	$ 1.3
2009 Equity Compensation Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	1 year
2009 Equity Compensation Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years

Stock-Based Compensation Plans - Market Stock Units (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of Market Stock Units
Outstanding on December 31, 2019 (in shares)	139,643
Granted (in shares)	21,648
Exchanged for stock (in shares)	(24,035)
Outstanding on December 31, 2020 (in shares)	137,256	139,643
Maximum Shares Potentially Issuable
Outstanding on December 31, 2019 (in shares)	199,303
Granted (in shares)	32,472
Exchanged for stock (in shares)	(36,052)
Outstanding on December 31, 2020 (in shares)	195,723	199,303
MSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expense	$ 0.7	$ 1.2
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential Shares From MSU Vest	0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential Shares From MSU Vest	150.00%
Trading days	60 days

Stock-Based Compensation Plans - Stock Options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 0
Outstanding stock options (in shares)	80,000
Weighted average exercise price (in USD per share)	$ 27.70
Share-based Payment Arrangement, Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expense	$ 100,000	$ 100,000

Stock-Based Compensation Plans - Performance Awards (Details) - PAs $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	10,852
Stock options expense \| $	$ 0.1
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity share payout range (in shares)	0
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity share payout range (in shares)	16,278

Segment Information - Reportable Segments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Revenue	$ 351,591	$ 370,785
Gross profit	186,538	197,354
Operating Income	20,550	9,066
Interest expense	(654)	(603)
Other income, net	889	1,211
Income before income taxes	20,785	9,674
Capital expenditures	1,687	2,028
Depreciation and amortization	6,701	5,893
Total assets	256,304	204,429
Equity Method Investments	(8,719)	(8,548)
Lawson
Segment Reporting Information [Line Items]
Revenue	312,803	329,367
Gross profit	171,258	181,567
Operating Income	17,715	6,483
Capital expenditures	1,529	1,522
Depreciation and amortization	5,343	4,757
Total assets	$ 221,490	168,803
Bolt
Segment Reporting Information [Line Items]
Number of branches \| segment	14
Revenue	$ 38,788	41,418
Gross profit	15,280	15,787
Operating Income	2,835	2,583
Capital expenditures	158	506
Depreciation and amortization	1,358	1,136
Total assets	$ 43,533	$ 44,174

Segment Information - Reportable Segments by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenue	$ 351,591	$ 370,785
Long-lived assets	78,575	61,327
United States
Segment Reporting Information [Line Items]
Revenue	283,261	295,675
Long-lived assets	44,395	25,478
Canada
Segment Reporting Information [Line Items]
Revenue	68,330	75,110
Long-lived assets	$ 34,180	$ 35,849

- Definition

+ References

+ Details

Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of Repurchase Agreements [Abstract]
Stock repurchase program, authorized amount	$ 4.5	$ 7.5
Treasury stock acquired (in shares)	47,504	32,362
Treasury stock acquired (in USD per share)	$ 36.93	$ 38.13

Related Party Transactions (Details) $ in Millions	12 Months Ended
Related Party Transactions (Details) $ in Millions	Dec. 31, 2020 USD ($)
Related Party Transactions [Abstract]
Inventory purchased from related party	$ 0.9

COVID-19 Risks and Uncertainties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Mar. 27, 2020	Dec. 31, 2019
Unusual Risk or Uncertainty [Line Items]
Deferred employer side social security payments			$ 3,500
Canada emergency wage subsidy		$ 1,400
Cash and cash equivalents		28,393		$ 5,495
Accrued acquisition liability		$ 32,673		$ 0
Forecast
Unusual Risk or Uncertainty [Line Items]
Payments Of Deferred Employer Payroll Tax, CARES Act	$ 1,700

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Allowance for doubtful accounts:
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 593	$ 549
Charged to Costs and Expenses	578	623
Deductions	(517)	(579)
Balance at end of period	654	593
Valuation allowance for deferred tax assets:
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	1,235	2,569
Charged to Costs and Expenses	22	0
Deductions	0	(1,334)
Balance at end of period	$ 1,257	$ 1,235

Label	Element	Value
Accounting Standards Update [Extensible List]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-02 [Member]

- Definition

Indicates amendment to accounting standards.

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+ Details