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Other
 12 Months Ended
Dec. 31, 2012
Other

NOTE M — OTHER

Inventory

The components of inventory are as follows:

 

     December 31,  
     2012      2011  
     (in thousands)  

Finished goods

    $ 101,021       $ 107,471   

Work in process

      2,046         1,683   

Raw materials

      1,517         1,183   
  

 

 

     

 

 

  

Total

    $ 104,584       $ 110,337   
  

 

 

     

 

 

  

Property and equipment

Property and equipment consist of:

 

     December 31,  
     2012     2011  
     (in thousands)  

Machinery, furniture and equipment

    $ 75,896      $ 70,037   

Leasehold improvements

      26,334        25,050   

Building and improvements

      1,604        1,604   

Construction in progress

      920        1,900   

Land

      100        100   
  

 

 

    

 

 

  
     104,854        98,691   

Less: accumulated depreciation and amortization

      (73,208 )      (64,367 ) 
  

 

 

    

 

 

  

Total

    $ 31,646      $ 34,324   
  

 

 

    

 

 

  

Depreciation and amortization expense on property and equipment for the years ended December 31, 2012, 2011 and 2010 was $7.8 million, $7.5 million and $8.2 million, respectively.

Included in machinery, furniture and equipment at each of December 31, 2012 and 2011 is $2.1 million related to assets recorded under capital leases. Included in accumulated depreciation and amortization at each of December 31, 2012 and 2011 is $1.9 million related to assets recorded under capital leases.

 

Accrued expenses

Accrued expenses consist of:

 

     December 31,  
     2012      2011  
     (in thousands)  

Customer allowances and rebates

    $ 10,595       $ 10,422   

Compensation and benefits

      7,824         7,950   

Interest

      401         441   

Vendor invoices

      5,355         1,984   

Royalties

      2,259         2,181   

Commissions

      1,089         1,093   

Freight

      1,122         1,419   

Contingent consideration related to GSI investment

      —           2,622   

Contingent consideration related to F&F acquisition

      730         —     

Working capital excess related to F&F acquisition

      845         —     

Other

      3,134         5,765   
  

 

 

     

 

 

  

Total

    $ 33,354       $ 33,877   
  

 

 

     

 

 

  

Deferred rent & other long-term liabilities

Deferred rent & other long-term liabilities consist of:

 

     December 31,  
     2012      2011  
     (in thousands)  

Deferred rent liability

    $ 10,719       $ 11,354   

Retirement benefit obligations

      5,752         3,244   

Contingent consideration related to F&F acquisition

      4,640         —     

Derivative liability

      454         —     
  

 

 

     

 

 

  

Total

    $ 21,565       $ 14,598   
  

 

 

     

 

 

  

Extraordinary item

In December 2010, the Company paid $2.5 million to ARC International SA for all outstanding consideration remaining due or payable related to its 2008 acquisition of the business and certain assets of Mikasa®, Inc. As a result of the payment of this amount to ARC, the Company adjusted the remaining book value of the acquired Mikasa® intangible assets, including the trade name and associated deferred tax liability, to zero and the negative goodwill balance to approximately $2.5 million. Concurrently, the remaining balance of negative goodwill was eliminated resulting in an extraordinary gain in the amount of $2.5 million in 2010.

 

Supplemental cash flow information

 

     Year Ended December 31,  
     2012      2011     2010  
     (in thousands)  

Supplemental disclosure of cash flow information:

   

Cash paid for interest

    $ 5,498       $ 6,877      $ 6,893   

Cash paid for taxes

      6,067         10,331        1,198   

Non-cash investing activities:

        

Translation adjustment

    $ 3,077       $ (704 )    $ 1,088   

Components of accumulated other comprehensive loss, net

 

     Year Ended December 31,  
     2012     2011     2010  
     (in thousands)  

Accumulated translation adjustment:

       

Balance at beginning of year

    $ (5,881 )    $ (5,177 )    $ (6,265 ) 

Translation adjustment during period

      3,077        (704 )      1,088   
  

 

 

    

 

 

    

 

 

  

Balance at end of year

    $ (2,804 )    $ (5,881 )    $ (5,177 ) 
  

 

 

    

 

 

    

 

 

  

Accumulated effect of retirement benefit obligations:

       

Balance at beginning of year

    $ —        $ —        $ —     

Net loss arising from retirement benefit obligations, net of tax

      (1,187 )      —          —     

Amounts reclassified from accumulated other comprehensive loss:

       

Amortization of loss, net of tax(1)

      27        —          —     
  

 

 

    

 

 

    

 

 

  

Balance at end of year

    $ (1,160 )    $ —        $ —     
  

 

 

    

 

 

    

 

 

  

Accumulated deferred gains (losses) on cash flow hedges:

       

Balance at beginning of year

    $ —        $ —        $ (549 ) 

Derivative fair value adjustment, net of tax

      (272 )      —          57   

Amounts reclassified from accumulated other comprehensive loss:

       

Hedge de-designation, net of tax(2)

      —          —          342   

Interest rate swap termination, net of tax

      —          —          150   
  

 

 

    

 

 

    

 

 

  

Balance at end of year

    $ (272 )    $ —        $ —     
  

 

 

    

 

 

    

 

 

  

Notes:

 

(1)

Amount is recorded in selling, general and administrative expenses on the consolidated statements of operations.
(2) 

Amount is recorded in interest expense on the consolidated statements of operations.