Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.20.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 28, 2019
Accounting Policies [Abstract]  
Summary of Property and Equipment
Property and equipment, net, consists of the following at December 28, 2019 and December 29, 2018:
 
Estimated
Useful Life
 
 
 
 
 
(Years)
 
2019
 
2018
Land
n/a
 
$

 
$
20

Buildings
25
 

 
341

Leasehold improvements
life of lease
 
10,982

 
8,273

Machinery and equipment
2-10
 
308,096

 
271,061

Computer equipment and software
2-5
 
60,412

 
53,471

Furniture and fixtures
6-8
 
2,749

 
2,629

Construction in process
 
 
2,712

 
3,653

Property and equipment, gross
 
 
384,951

 
339,448

Less: Accumulated depreciation
 
 
179,791

 
131,169

Property and equipment, net
 
 
$
205,160

 
$
208,279


Summary of Goodwill
Goodwill amounts by reportable segment are summarized as follows:
 
 
Goodwill at
 
 
 
 
 
 
 
 
 
Goodwill at
 
 
December 29, 2018
 
Acquisitions(1) 
 
Disposals
 
Adjustments(2)
 
Other(3)
 
December 28, 2019
Fastening, Hardware, and Personal Protection
 
$
564,143

 
$

 
$

 
$
3,540

 
$
164

 
$
567,847

Consumer Connected Solutions
 
211,766

 
9,382

 

 
948

 

 
222,096

Canada
 
27,938

 

 

 

 
1,196

 
29,134

Total
 
$
803,847

 
$
9,382

 
$

 
$
4,488

 
$
1,360

 
$
819,077


(1)
See Note 5 - Acquisitions for additional information regarding the Resharp acquisition.
(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.
(3)
The "Other" change to goodwill relates to adjustments resulting from fluctuations in foreign currency exchange rates for the Canada and Mexico reporting units.
Schedule of Intangible Assets
Other intangibles, net, as of December 28, 2019 and December 29, 2018 consist of the following:
 
Estimated
 
 
 
 
 
Useful Life
(Years)
 
December 28, 2019
 
December 29, 2018
Customer relationships
13-20
 
$
941,305

 
$
939,880

Trademarks - Indefinite
Indefinite
 
85,517

 
85,228

Trademarks - Other
5-15
 
26,700

 
26,700

Technology and patents
7-12
 
60,968

 
55,394

Intangible assets, gross
 
 
1,114,490

 
1,107,202

Less: Accumulated amortization
 
 
232,060

 
176,677

Intangible assets, net
 
 
$
882,430

 
$
930,525


Schedule of Intangible Assets
Other intangibles, net, as of December 28, 2019 and December 29, 2018 consist of the following:
 
Estimated
 
 
 
 
 
Useful Life
(Years)
 
December 28, 2019
 
December 29, 2018
Customer relationships
13-20
 
$
941,305

 
$
939,880

Trademarks - Indefinite
Indefinite
 
85,517

 
85,228

Trademarks - Other
5-15
 
26,700

 
26,700

Technology and patents
7-12
 
60,968

 
55,394

Intangible assets, gross
 
 
1,114,490

 
1,107,202

Less: Accumulated amortization
 
 
232,060

 
176,677

Intangible assets, net
 
 
$
882,430

 
$
930,525


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:
Fiscal Year Ended
 
Amortization Expense
2020
 
$
59,262

2021
 
$
59,262

2022
 
$
59,262

2023
 
$
59,262

2024
 
$
59,262


Summary of Disaggregation of Revenue
The following table disaggregates our revenue by product category:
 
Fastening, Hardware, and Personal Protective Solutions
 
Consumer Connected Solutions
 
Canada
 
Total Revenue
Year Ended December 28, 2019
 
 
 
 
 
 
 
Fastening and Hardware
$
607,247

 
$

 
$
121,242

 
$
728,489

Personal Protective
245,769

 

 

 
245,769

Keys and Key Accessories

 
185,451

 
4,009

 
189,460

Engraving

 
50,613

 
9

 
50,622

Resharp

 
22

 

 
22

Consolidated
$
853,016

 
$
236,086

 
$
125,260

 
$
1,214,362

 
 
 
 
 
 
 
 
Year Ended December 29, 2018
 
 
 
 
 
 
 
Fastening and Hardware
$
581,269

 
$

 
$
137,186

 
$
718,455

Personal Protective
55,448

 

 

 
55,448

Keys and Key Accessories

 
143,898

 
4,217

 
148,115

Engraving

 
52,145

 
12

 
52,157

Resharp

 

 

 

Consolidated
$
636,717

 
$
196,043

 
$
141,415

 
$
974,175

 
 
 
 
 
 
 
 
Year Ended December 30, 2017
 
 
 
 
 
 
 
Fastening and Hardware
$
528,969

 
$

 
$
133,082

 
$
662,051

Personal Protective

 

 

 

Keys and Key Accessories

 
115,924

 
4,706

 
120,630

Engraving

 
55,674

 
13

 
55,687

Resharp

 

 

 

Consolidated
$
528,969

 
$
171,598

 
$
137,801

 
$
838,368














The following table disaggregates our revenue by geographic location:
 
Fastening, Hardware, and Personal Protective Solutions
 
Consumer Connected Solutions
 
Canada
 
Total Revenue
Year Ended December 28, 2019
 
 
 
 
 
 
 
United States
$
835,957

 
$
234,216

 
$

 
$
1,070,173

Canada
5,905

 
1,870

 
125,260

 
133,035

Mexico
11,154

 

 

 
11,154

Consolidated
$
853,016

 
$
236,086

 
$
125,260

 
$
1,214,362

 
 
 
 
 
 
 
 
Year Ended December 29, 2018
 
 
 
 
 
 
 
United States
$
626,490

 
$
195,538

 
$

 
$
822,028

Canada
1,944

 
505

 
141,415

 
143,864

Mexico
8,283

 

 

 
8,283

Consolidated
$
636,717

 
$
196,043

 
$
141,415

 
$
974,175

 
 
 
 
 
 
 
 
Year Ended December 30, 2017
 
 
 
 
 
 
 
United States
$
522,002

 
$
171,598

 
$

 
$
693,600

Canada

 

 
137,801

 
137,801

Mexico
6,967

 

 

 
6,967

Consolidated
$
528,969

 
$
171,598

 
$
137,801

 
$
838,368