Summary of Significant Accounting Policies (Tables)
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12 Months Ended |
Dec. 28, 2019 |
Accounting Policies [Abstract] |
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Summary of Property and Equipment |
Property and equipment, net, consists of the following at December 28, 2019 and December 29, 2018:
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Estimated
Useful Life
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(Years) |
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2019 |
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2018 |
Land |
n/a |
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$ |
— |
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$ |
20 |
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Buildings |
25 |
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— |
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|
341 |
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Leasehold improvements |
life of lease |
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10,982 |
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8,273 |
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Machinery and equipment |
2-10 |
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308,096 |
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271,061 |
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Computer equipment and software |
2-5 |
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60,412 |
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53,471 |
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Furniture and fixtures |
6-8 |
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2,749 |
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2,629 |
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Construction in process |
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2,712 |
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3,653 |
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Property and equipment, gross |
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384,951 |
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339,448 |
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Less: Accumulated depreciation |
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179,791 |
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131,169 |
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Property and equipment, net |
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$ |
205,160 |
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$ |
208,279 |
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Summary of Goodwill |
Goodwill amounts by reportable segment are summarized as follows:
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Goodwill at |
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Goodwill at |
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December 29, 2018 |
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Acquisitions(1)
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Disposals |
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Adjustments(2)
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Other(3)
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December 28, 2019 |
Fastening, Hardware, and Personal Protection |
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$ |
564,143 |
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$ |
— |
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$ |
— |
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$ |
3,540 |
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$ |
164 |
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$ |
567,847 |
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Consumer Connected Solutions |
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211,766 |
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|
9,382 |
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— |
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|
948 |
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— |
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222,096 |
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Canada |
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27,938 |
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— |
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— |
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— |
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1,196 |
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29,134 |
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Total |
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$ |
803,847 |
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$ |
9,382 |
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$ |
— |
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$ |
4,488 |
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$ |
1,360 |
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$ |
819,077 |
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(1) |
See Note 5 - Acquisitions for additional information regarding the Resharp acquisition.
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(2) |
These amounts related to opening balance sheet adjustments from the acquisition of MinuteKey and Big Time. These adjustments were primarily related to $2,087 increase in inventory reserve and a $1,106 increase in assumed liabilities for Big Time, as well as a $633 increase in assumed liabilities for MinuteKey. These acquisitions were completed in the third and fourth quarter of 2018, respectively and purchase price accounting adjustments are finalized as of the current period.
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(3)
The "Other" change to goodwill relates to adjustments resulting from fluctuations in foreign currency exchange rates for the Canada and Mexico reporting units.
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Schedule of Intangible Assets |
Other intangibles, net, as of December 28, 2019 and December 29, 2018 consist of the following:
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Estimated |
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Useful Life
(Years)
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December 28, 2019 |
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December 29, 2018 |
Customer relationships |
13-20 |
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$ |
941,305 |
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$ |
939,880 |
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Trademarks - Indefinite |
Indefinite |
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85,517 |
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85,228 |
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Trademarks - Other |
5-15 |
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26,700 |
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26,700 |
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Technology and patents |
7-12 |
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60,968 |
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55,394 |
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Intangible assets, gross |
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1,114,490 |
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1,107,202 |
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Less: Accumulated amortization |
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232,060 |
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176,677 |
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Intangible assets, net |
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$ |
882,430 |
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$ |
930,525 |
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Schedule of Intangible Assets |
Other intangibles, net, as of December 28, 2019 and December 29, 2018 consist of the following:
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Estimated |
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Useful Life
(Years)
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December 28, 2019 |
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December 29, 2018 |
Customer relationships |
13-20 |
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$ |
941,305 |
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$ |
939,880 |
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Trademarks - Indefinite |
Indefinite |
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85,517 |
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85,228 |
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Trademarks - Other |
5-15 |
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26,700 |
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26,700 |
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Technology and patents |
7-12 |
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60,968 |
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55,394 |
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Intangible assets, gross |
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1,114,490 |
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1,107,202 |
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Less: Accumulated amortization |
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232,060 |
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176,677 |
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Intangible assets, net |
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$ |
882,430 |
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$ |
930,525 |
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Schedule of Future Amortization Expense |
Estimated annual amortization expense for intangible assets subject to amortization at December 28, 2019 for the next five fiscal years is as follows:
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Fiscal Year Ended |
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Amortization Expense |
2020 |
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$ |
59,262 |
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2021 |
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$ |
59,262 |
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2022 |
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$ |
59,262 |
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2023 |
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$ |
59,262 |
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2024 |
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$ |
59,262 |
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Summary of Disaggregation of Revenue |
The following table disaggregates our revenue by product category:
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Fastening, Hardware, and Personal Protective Solutions |
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Consumer Connected Solutions |
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Canada |
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Total Revenue |
Year Ended December 28, 2019 |
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Fastening and Hardware |
$ |
607,247 |
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$ |
— |
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$ |
121,242 |
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$ |
728,489 |
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Personal Protective |
245,769 |
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— |
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— |
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245,769 |
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Keys and Key Accessories |
— |
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185,451 |
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4,009 |
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189,460 |
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Engraving |
— |
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50,613 |
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9 |
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50,622 |
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Resharp |
— |
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22 |
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— |
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22 |
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Consolidated |
$ |
853,016 |
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$ |
236,086 |
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$ |
125,260 |
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$ |
1,214,362 |
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Year Ended December 29, 2018 |
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Fastening and Hardware |
$ |
581,269 |
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$ |
— |
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$ |
137,186 |
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$ |
718,455 |
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Personal Protective |
55,448 |
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— |
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— |
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55,448 |
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Keys and Key Accessories |
— |
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143,898 |
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4,217 |
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148,115 |
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Engraving |
— |
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52,145 |
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12 |
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52,157 |
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Resharp |
— |
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— |
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— |
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— |
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Consolidated |
$ |
636,717 |
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$ |
196,043 |
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$ |
141,415 |
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$ |
974,175 |
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Year Ended December 30, 2017 |
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Fastening and Hardware |
$ |
528,969 |
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$ |
— |
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$ |
133,082 |
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$ |
662,051 |
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Personal Protective |
— |
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— |
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— |
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— |
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Keys and Key Accessories |
— |
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115,924 |
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4,706 |
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120,630 |
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Engraving |
— |
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55,674 |
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13 |
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55,687 |
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Resharp |
— |
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— |
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— |
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— |
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Consolidated |
$ |
528,969 |
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$ |
171,598 |
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$ |
137,801 |
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$ |
838,368 |
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The following table disaggregates our revenue by geographic location:
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Fastening, Hardware, and Personal Protective Solutions |
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Consumer Connected Solutions |
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Canada |
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Total Revenue |
Year Ended December 28, 2019 |
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United States |
$ |
835,957 |
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$ |
234,216 |
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$ |
— |
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$ |
1,070,173 |
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Canada |
5,905 |
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1,870 |
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125,260 |
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|
133,035 |
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Mexico |
11,154 |
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— |
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— |
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11,154 |
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Consolidated |
$ |
853,016 |
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$ |
236,086 |
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$ |
125,260 |
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$ |
1,214,362 |
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Year Ended December 29, 2018 |
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United States |
$ |
626,490 |
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$ |
195,538 |
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$ |
— |
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$ |
822,028 |
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Canada |
1,944 |
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|
505 |
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141,415 |
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|
143,864 |
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Mexico |
8,283 |
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— |
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— |
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8,283 |
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Consolidated |
$ |
636,717 |
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$ |
196,043 |
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$ |
141,415 |
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$ |
974,175 |
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Year Ended December 30, 2017 |
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United States |
$ |
522,002 |
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$ |
171,598 |
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$ |
— |
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$ |
693,600 |
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Canada |
— |
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— |
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|
137,801 |
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137,801 |
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Mexico |
6,967 |
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— |
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— |
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6,967 |
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Consolidated |
$ |
528,969 |
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$ |
171,598 |
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$ |
137,801 |
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$ |
838,368 |
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