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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2011	Jan. 31, 2012	Jun. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	LAWSON PRODUCTS INC/NEW/DE/
Entity Central Index Key	0000703604
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 84,100,000
Entity Common Stock, Shares Outstanding		8,574,291

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 2,116	$ 40,566
Accounts receivable, less allowance for doubtful accounts of $1,912 and $1,085, respectively	43,239	33,398
Inventories	55,498	47,167
Miscellaneous receivables and prepaid expenses	7,064	8,905
Deferred income taxes	5,716	4,251
Discontinued operations	410	619
Total current assets	114,043	134,906
Property, plant and equipment, less accumulated depreciation and amortization	52,702	44,442
Cash value of life insurance	15,490	15,660
Deferred income taxes	11,864	11,492
Goodwill	28,148	28,307
Other assets	501	1,577
Total assets	222,748	236,384
Current liabilities:
Accounts payable	22,967	18,195
Accrued expenses and other liabilities	28,231	35,348
Discontinued operations	681	2,008
Total current liabilities	51,879	55,551
Noncurrent liabilities and deferred credits:
Security bonus plan	23,310	25,602
Deferred compensation	9,279	10,792
Other	4,108	1,574
Total noncurrent liabilities	36,697	37,968
Commitments and contingencies - Note 12
Stockholders' equity:
Preferred stock, $1 par value: Authorized - 500,000 shares, Issued and outstanding - None
Common stock, $1 par value: Authorized - 35,000,000 shares, Issued - 8,580,753 and 8,534,028 shares Outstanding - 8,574,291 and 8,531,325 shares	8,581	8,534
Capital in excess of par value	6,210	5,328
Retained earnings	117,371	126,098
Treasury stock - 6,462 and 2,703 shares held, respectively	(130)	(70)
Accumulated other comprehensive income	2,140	2,975
Total stockholders' equity	134,172	142,865
Total liabilities and stockholders' equity	$ 222,748	$ 236,384

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 1,912	$ 1,085
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	8,580,753	8,534,028
Common stock, shares outstanding	8,574,291	8,531,325
Treasury stock, shares	6,462	2,703

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements of Operations [Abstract]
Net sales	$ 314,959	$ 316,780	$ 301,769
Cost of goods sold	135,182	121,954	116,210
Gross profit	179,777	194,826	185,559
Operating expenses:
Selling, general and administrative expenses	181,291	180,021	177,421
Severance expenses	1,614	3,629	6,228
Loss (gain) on sale of assets	22	(1,701)	16
Other operating expenses (income)	2,346	(4,050)	481
Operating expenses	185,273	177,899	184,146
Operating income (loss)	(5,496)	16,927	1,413
Interest expense	(681)	(391)	(1,037)
Other income, net	101	160	1,029
Income (loss) from continuing operations before income taxes	(6,076)	16,696	1,405
Income tax (benefit) expense	(1,687)	7,106	(507)
Income (loss) from continuing operations	(4,389)	9,590	1,912
Discontinued operations, net	(235)	(2,653)	(4,648)
Net income (loss)	$ (4,624)	$ 6,937	$ (2,736)
Basic income (loss) per share of common stock:
Continuing operations	$ (0.51)	$ 1.13	$ 0.22
Discontinued operations	(0.03)	(0.32)	(0.54)
Net Income (loss)	(0.54)	0.81	(0.32)
Diluted income (loss) per share of common stock:
Net Income (loss)	(0.54)	0.81	(0.32)
Continuing operations	(0.51)	1.12	0.22
Discontinued operations	$ (0.03)	$ (0.31)	$ (0.54)

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock, $1 par value	Capital in Excess of Par Value	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (loss)	Comprehensive Income (loss)
Balance at Dec. 31, 2008		$ 8,522	$ 4,774	$ 126,158	$ 0	$ (710)
Net income (loss)	$ (2,736)			(2,736)			$ (2,736)
Other comprehensive income (loss), net of tax:
Adjustment for foreign currency translation						2,166	2,166
Comprehensive income (loss) for the year							(570)
Stock based compensation			6
Cash dividends declared				(1,534)
Balance at Dec. 31, 2009		8,522	4,780	121,888	0	1,456
Net income (loss)	6,937			6,937			6,937
Other comprehensive income (loss), net of tax:
Adjustment for foreign currency translation						1,519	1,519
Comprehensive income (loss) for the year							8,456
Stock based compensation		12	548
Share repurchase					(70)
Cash dividends declared				(2,727)
Balance at Dec. 31, 2010	142,865	8,534	5,328	126,098	(70)	2,975
Net income (loss)	(4,624)			(4,624)			(4,624)
Other comprehensive income (loss), net of tax:
Adjustment for foreign currency translation						(835)	(835)
Comprehensive income (loss) for the year							$ (5,459)
Stock based compensation		47	882
Share repurchase					(60)
Cash dividends declared				(4,103)
Balance at Dec. 31, 2011	$ 134,172	$ 8,581	$ 6,210	$ 117,371	$ (130)	$ 2,140

- Definition

This element represents the amount of recognized equity-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Alternate captions include the words "stock-based compensation".

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- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

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- Definition

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

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- Definition

Adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency of the reporting entity, net of tax.

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- Definition

Value of stock (or other type of equity) issued during the period as a result of any equity-based compensation plan other than an employee stock ownership plan (ESOP), net of stock value of such awards forfeited. Stock issued could result from the issuance of restricted stock, the exercise of stock options, stock issued under employee stock purchase plans, and/or other employee benefit plans.

+ References + Details

- Definition

Equity impact of the cost of common and preferred stock that were repurchased during the period. Recorded using the cost method.

+ References + Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating activities
Net income (loss)	$ (4,624)	$ 6,937	$ (2,736)
Loss from discontinued operations	235	2,653	4,648
Income (loss) from continuing operations	(4,389)	9,590	1,912
Adjustments to reconcile net income (loss) from continuing operations to net cash (used in) provided by operating activities:
Depreciation and amortization	5,704	6,306	6,507
Deferred income taxes	(1,837)	5,220	2,941
Stock based compensation expense	61	1,915	12
Settlement payment		(10,000)	(10,000)
Loss (gain) on disposal of property and equipment	22	(1,701)	16
Changes in operating assets and liabilities:
Accounts receivable	(11,422)	(4,678)	6,595
Inventories	(8,432)	(3,539)	6,278
Prepaid expenses and other assets	2,035	2,118	3,403
Accounts payable and accrued expenses	(1,156)	6,219	(5,532)
Other	(3,494)	(125)	(1,570)
Net cash (used in) provided by operating activities	(22,908)	11,325	10,562
Investing activities
Purchases of property, plant and equipment	(11,132)	(10,048)	(2,721)
Proceeds related to sale of businesses, net	58	27,264
Proceeds from sale of property		2,027	2,179
Net cash (used in) provided by investing activities	(11,074)	19,243	(542)
Financing activities
Net payments on revolving line of credit			(7,700)
Dividends paid	(4,098)	(2,216)	(2,727)
Other		(32)	(420)
Net cash used in financing activities	(4,098)	(2,248)	(10,847)
Discontinued operations
Operating cash flows	(370)	3,463	5,361
Investing cash flows		(4)	(47)
Net cash (used in) provided by discontinued operations	(370)	3,459	5,314
Increase (decrease) in cash and cash equivalents	(38,450)	31,779	4,487
Cash and cash equivalents at beginning of year	40,566	8,787	4,300
Cash and cash equivalents at end of year	$ 2,116	$ 40,566	$ 8,787

Description of Business

12 Months Ended

Dec. 31, 2011

Description of Business [Abstract]

Description of Business

Note 1 — Description of Business

Lawson Products, Inc. (“Lawson” or the “Company”) is a North American distributor of products and services to the industrial, commercial, institutional and governmental maintenance, repair and operations (“MRO”) marketplace. The Company also manufactures and distributes specialized component parts to the original equipment manufacturers (“OEM”) marketplace.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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-SubTopic 15
-URI http://asc.fasb.org/subtopic&trid=2122524

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2134480

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 — 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 prior period amounts have been reclassified to conform to the current year presentation.

Revenue Recognition — Net sales includes product sale 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 rates of return.

Shipping and Handling Fees and Costs — Shipping and handling fees charged to customers totaled $12.8 million, $13.0 million and $12.6 million in 2011, 2010 and 2009, respectively, and are included in the caption Net sales on the Consolidated Statements of Operations. Costs related to shipping and handling fees of $13.1 million, $11.0 million and $10.3 million in 2011, 2010 and 2009, respectively, are included in Cost of goods sold.

Cash Equivalents — The Company considers all highly liquid investments with a maturity of three months or less when purchased, such as money market funds, to be cash equivalents.

Allowance for Doubtful Accounts Methodology — 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 by a material amount.

Inventories — Inventories principally consist of finished goods and some raw materials and work in process related to the manufacturing process at ASMP. Inventories are stated at the lower of cost (first-in-first-out method) or market. To reduce inventory to a lower of cost or market value, a reserve is recorded for slow-moving and obsolete inventory based on historical experience and monitoring 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 classification and product obsolescence. It is the Company’s policy to not re-value inventory to the original cost basis subsequent to establishing a new cost basis.

Inventories that are not considered ready for sale are classified as either raw materials or work in process. All MRO inventory is considered to be in a state ready for sale and classified as finished goods.

Property, Plant and Equipment — Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed by the straight-line method for buildings and improvements using useful lives of 20 to 30 years and using the straight-line and double declining balance methods for machinery and equipment, furniture and fixtures and vehicles using useful lives of 3 to 10 years. Amortization of capitalized leases is included in depreciation expense. Depreciation expense was $3.9 million, $3.7 million and $4.2 million for 2011, 2010 and 2009, 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 $1.7 million, $2.6 million and $2.3 million for 2011, 2010 and 2009, respectively.

Cash Value of Life Insurance — The Company has invested funds in life insurance policies on certain current and former executives. The cash surrender value of the policies is invested in various investment instruments and is recorded as an asset on our financial statements. The change in the cash surrender value of the life insurance policies, which is based on the market value of investment instruments, is recorded as a component of Selling, general and administrative expenses.

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 participants’ Account Balances. The increase or decrease is recorded as a component of Selling, 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. See Note 13—Stock Compensation Plans.

Goodwill — 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 chief decision maker responsible for reviewing operating performance and allocating resources. Goodwill is tested annually during the fourth quarter, or when events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. Impairment of goodwill is evaluated using a two-step process. First, the fair value of the reporting unit is compared with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired, and thus, the second step of the impairment test is unnecessary. If the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any.

Impairment of Long-Lived Assets — The Company reviews its long-lived assets, including property, plant and equipment and 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.

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 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, the Company considers 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 and in evaluating tax positions. In the normal course of business, the Company and its subsidiaries are examined by various Federal, State and foreign tax authorities. The Company records the impact of a tax position, if that position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company regularly assesses the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a revision become known.

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 capital leases at inception. Operating lease costs are recognized on a straight-line basis over the term of the lease. An asset and a corresponding liability for the capital lease obligation are established for the cost of capital leases. The capital lease obligation is amortized over the life of the lease. For build-to-suit leases, the Company establishes an asset and liability for the estimated construction costs incurred to the extent that it is involved in the construction of structural improvements or takes construction risk prior to the commencement of the lease. Upon occupancy of facilities under build-to-suit leases, the Company assesses whether these arrangements qualify for sales recognition under the sale-leaseback accounting guidance.

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 and restricted stock awards into common stock.

Foreign Currency — The accounts of foreign subsidiaries are measured using the local currency as the functional currency. All balance sheet amounts have been translated into U.S. dollars using the exchange rates in effect at the applicable period end. Income statement amounts have been translated using the average exchange rate for the applicable period. The gains and losses resulting from the changes in exchange rates from the translation of subsidiary accounts in local currency to U.S. dollars have been reported as a component of Accumulated other comprehensive income in the Consolidated Balance Sheets. Foreign currency transaction gains and losses result from the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. These gains and losses are included in the Consolidated Statements of Operations and were immaterial for all years presented.

Treasury Stock —The Company repurchased 3,759 and 2,703 shares of its common stock in 2011 and 2010, 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.

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 in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates.

Recent Accounting Pronouncements

In June 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-05, an amendment to ASC 220, Comprehensive Income. This accounting standard update eliminates the option to present components of other comprehensive income as part of the statement of equity and requires that the total of comprehensive income, the components of net income, and the components of other comprehensive income be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. It also requires presentation on the face of the financial statements of reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statements where the components of net income and the components of other comprehensive income are presented. The amendments in this ASU are to be applied retrospectively. This update is effective for fiscal years and interim periods within those years beginning after December 15, 2011. Portions of ASU 2011-05 were amended in December.

In December, the FASB issued ASU 2011-12, an amendment to certain pending paragraphs from ASU 2011-05. This amendment allowed for companies to defer the effective date of the change in presentation on the face of the financial statements of reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statements where the components of net income and the components of other comprehensive income are presented until the FASB has further deliberated financial statement users need for this information. The effective date for all other amendments put forth in ASU No. 2011-05 are unaffected by this update. This update is effective for fiscal years and interim periods within those years beginning after December 15, 2011.

In September 2011, the FASB issued ASU No. 2011-08, an amendment to ASC 350, Intangibles – Goodwill and Other. The amendment allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity no longer will be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This amendment is effective for goodwill impairment tests performed for fiscal years beginning after December 15, 2011 with early adoption permitted.

The Company has not early adopted these ASUs and does not expect them to have a material impact on its Consolidated Financial Statements.

Subsequent Events — The Company has evaluated events through the issue date of this Form 10-K and has determined that no reportable events have occurred subsequent to the date of these financial statements.

Inventories

12 Months Ended

Dec. 31, 2011

Inventories [Abstract]

Inventories

Note 3 — Inventories

Components of inventories were as follows:

		September 30,			September 30,
	(Dollars in thousands) December 31,
	2011			2010
Finished goods	$	56,985		$	49,084
Work in progress		1,935			1,203
Raw materials		1,624			1,591

Total		60,544			51,878
Reserve for obsolete and excess inventory		(5,046	)		(4,711	)

	$	55,498		$	47,167

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2011

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 4 — Property, Plant and Equipment

Components of property, plant and equipment were as follows:

		September 30,			September 30,
	(Dollars in thousands) December 31,
	2011			2010
Land	$	8,750		$	8,781
Buildings and improvements		49,917			49,857
Machinery and equipment		28,767			32,062
Capitalized software		21,422			9,279
Furniture and fixtures		5,640			5,538
Capital leases		3,501			3,210
Vehicles		131			247
Construction in progress		8,263			8,944

		126,391			117,918
Accumulated depreciation and amortization		(73,689	)		(73,476	)

	$	52,702		$	44,442

Construction in progress at December 31, 2011 includes $5.6 million related to the construction of the new McCook, Illinois distribution center (“McCook Facility”), $1.2 million related to the development of a new website and $1.4 million related to various other business improvement projects.

The $5.6 million construction in progress for the McCook Facility includes $4.0 million related to a build-to-suit lease. Because the Company was directly involved in structural improvements to the McCook Facility and made direct payments for construction costs, under build-to-suit accounting guidance, the Company recorded a $4.0 million asset and a corresponding $4.0 million construction liability of which $0.6 million is included in accrued expenses and other liabilities and $3.4 million is included in other noncurrent liabilities. Because the recording of the asset and construction liability was a non-cash transaction, it was not reflected in the Consolidated Statements of Cash Flows. When the McCook Facility is occupied, scheduled for 2012, the Company will assess whether the lease arrangement qualifies for sales recognition under sale-leaseback accounting guidance.

The December 31, 2010 construction in progress includes $6.5 million related to the new ERP system.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Impairment of Long-Lived Assets

12 Months Ended

Dec. 31, 2011

Impairment of Long-Lived Assets/Goodwill [Abstract]

Impairment of Long-Lived Assets

Note 5 — Impairment of Long-Lived Assets

In 2010, the Company stated that it was evaluating strategic alternatives regarding its ASMP operations. Although the Company has not committed to a plan to divest ASMP, management believes it would be more likely than not that ASMP would be sold or otherwise disposed of significantly before the end of its previously estimated useful life. Therefore, the Company reviewed the recoverability of ASMP’s long-lived assets.

In performing the review for recoverability, the Company determined that the future expected undiscounted cash flows of ASMP were less than the carrying amount of the assets, indicating the assets had been impaired. The amount of impairment was then measured based on the amount by which the carrying amount of ASMP’s assets exceeded its fair value which was determined by an independent assessment of the amount the assets would be worth to a willing buyer in an open market. Accordingly, in 2011, the Company recorded an impairment charge of $1.1 million related to property, plant and equipment in the OEM segment.

The Company had previously recorded a $0.3 million impairment to OEM property, plant and equipment in 2009.

Goodwill

12 Months Ended

Dec. 31, 2011

Impairment of Long-Lived Assets/Goodwill [Abstract]

Goodwill

Note 6 — Goodwill

The Company reviews goodwill annually during the fourth quarter, or when events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. Goodwill impairment is deemed to exist if the carrying amount of a reporting unit exceeds its estimated fair value and the goodwill impairment charge, if any, is measured as the difference between the carrying amount of the goodwill as compared to its estimated fair value.

In 2011, the Company reviewed its $28.1 million goodwill balance, all of which relates to the MRO segment, due to a 2001 acquisition. The Company estimated the fair value of the MRO segment using a market approach, which relies on the market value of companies that are engaged in the same line of business and also prepared a discounted cash flow (“DCF”) analysis based on its operating plan to determine a range of fair values. The Company then reconciled the estimated fair value of the MRO segment to the market capitalization of the consolidated Company based on the trading range of the Company’s stock. After reviewing the analysis, the Company concluded that the calculated fair value of the MRO segment exceeded its carrying value by $38 million and, therefore, the goodwill was not considered impaired.

Goodwill activity in 2011 and 2010 was as follows:

		September 30,			September 30,
	(Dollars in thousands) December 31,
	2011			2010
Beginning balance	$	28,307		$	27,957
Translation adjustment		(159	)		350

Ending balance	$	28,148		$	28,307

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

Note 7 — Income Taxes

Income (loss) from continuing operations before income taxes consisted of the following:

		September 30,			September 30,		September 30,
	(Dollars in thousands) Year Ended December 31,
	2011			2010		2009

United States	$	(5,100	)	$	14,269	$	2,115
Canada		(976	)		2,427		(710	)

	$	(6,076	)	$	16,696	$	1,405

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

		September 30,			September 30,		September 30,
	(Dollars in thousands) Year Ended December 31,
	2011			2010		2009
Current income tax expense (benefit):
U.S. Federal	$	464		$	3,681	$	(2,491	)
U.S. state		295			987		77
Canada		(190	)		366		(102	)

Total	$	569		$	5,034	$	(2,516	)


Deferred income tax expense (benefit):
U.S. Federal	$	(2,187	)	$	1,648	$	2,065
U.S. state		(155	)		217		55
Canada		86			207		(111	)

Total	$	(2,256	)	$	2,072	$	2,009


Total income tax expense (benefit):
U.S. Federal	$	(1,723	)	$	5,329	$	(426	)
U.S. state		140			1,204		132
Canada		(104	)		573		(213	)

Total	$	(1,687	)	$	7,106	$	(507	)

The reconciliation between the effective income tax rate and the statutory federal rate for continuing operations was as follows:

		September 30,			September 30,			September 30,
	Year Ended December 31,
	2011			2010			2009

Statutory Federal rate		35.0	%		35.0	%		35.0	%
Increase (decrease) resulting from:
State and local taxes, net		(1.6	)		1.2			10.0
Executive life insurance		(1.0	)		(1.8	)		(35.0	)
Fines and penalties		0.3			(0.2	)		13.0
Meals & entertainment		(3.0	)		0.8			7.8
Capital loss carryforward		—			3.7			73.6
Deferred tax expense		1.0			1.2			—
Change in valuation allowance		(1.0	)		4.1			13.7
Change in uncertain tax positions		(1.6	)		(1.4	)		(154.0	)
Provision to return differences		(0.3	)		1.4			(1.9	)
Other items, net		—			(1.4	)		1.7

Provision for income taxes		27.8	%		42.6	%		(36.1	)%

Income taxes paid for the years ended December 31, 2011, 2010, and 2009 amounted to $2.6 million, $5.3 million and $2.8 million, respectively. In 2011 and 2010, the Company received $3.3 million and $5.8 million, respectively, in income tax refunds primarily related to income tax overpayments from prior years.

At December 31, 2011, the Company had $4.8 million of tax assets for net operating losses and tax credit carryforwards. The U.S. Federal carryforwards consist of $3.5 million of net operating losses which are subject to expiration in 2030 and $0.5 million of foreign tax credit carryforwards which are subject to expiration in 2020. In addition, the Company had $0.8 million of state net operating loss carryforwards which expire at varying dates through 2030.

The Company had valuation allowances of $0.9 million on both December 31, 2011 and 2010 which relate to certain state net operating losses and foreign tax credit carryforwards, the realization of which the Company believes is less than more likely than not.

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

		September 30,			September 30,
	(Dollars in thousands) December 31,
	2011			2010
Deferred tax assets:
Compensation and benefits	$	16,048		$	17,689
Net operating loss carryforward		4,286			2,380
Inventory reserve		2,472			2,432
Accounts receivable reserve		723			399
Property, plant and equipment		879			—
Other		1,147			1,165

Total deferred tax assets		25,555			24,065
Valuation allowance for deferred tax assets		(938	)		(875	)

Net deferred tax assets		24,617			23,190


Deferred tax liabilities:
Goodwill		6,557			5,984
Property, plant and equipment		—			572
Other		480			891

Total deferred liabilities		7,037			7,447


Total net deferred assets	$	17,580		$	15,743


Net deferred tax assets:
Net current deferred income taxes	$	5,716		$	4,251
Net noncurrent deferred income taxes		11,864			11,492

	$	17,580		$	15,743

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

		September 30,		September 30,
	(Dollars in thousands) December 31,
	2011		2010

Balance at beginning of year	$	—	$	1,230

Additions for tax positions of current year		92	$	—
Settlements		—		(1,230	)

Balance at end of year	$	92	$	—

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, 2011 balance of unrecognized tax benefits represent tax positions that could significantly change during the next twelve months.

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, 2011, the Company was subject to income tax examinations in various jurisdictions for the tax years 2006 through 2010. During 2011, the Company completed U.S. Federal income tax examinations through tax year 2008.

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Accrued Expenses and Other Liabilities

12 Months Ended

Dec. 31, 2011

Accrued Expenses and Other Liabilities [Abstract]

Accrued Expenses and Other Liabilities

Note 8 — Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following:

		September 30,		September 30,
	(Dollars in thousands) December 31,
	2011		2010

Accrued compensation	$	9,573	$	13,912
Accrued profit sharing		2,424		2,356
Accrued and withheld taxes, other than income taxes		2,226		2,584
Accrued health benefits		1,234		1,145
Accrued severance		1,187		2,229
Cash dividends payable		1,027		1,023
Accrued stock based compensation		910		2,566
Employment tax matter		1,200		—
Construction in progress liability		623		—
Other		7,827		9,533

	$	28,231	$	35,348

Revolving Line of Credit

12 Months Ended

Dec. 31, 2011

Revolving Line of Credit [Abstract]

Revolving Line of Credit

Note 9 — Revolving Line of Credit

The Company has a credit agreement as amended (“Credit Agreement”) with The PrivateBank and Trust Company as agent and lender. The Credit Agreement provides for a total borrowing capacity of $55.0 million in the form of a revolving line of credit and letters of credit and expires on October 1, 2016. Additionally, the Company has a one-time option, subject to the agent’s consent, to increase the maximum borrowing capacity by an additional $20.0 million, thus increasing the maximum borrowing capacity to $75.0 million.

The applicable interest rate margins for borrowings are based on the Company’s debt to EBITDA ratio and range from Libor plus 1.25 to 1.85 or Prime minus 1.00 to 0.40 percent. The Credit Agreement is secured by cash, accounts receivable and inventory.

The Credit Agreement limits the annual dividend distribution to $10.0 million and, in addition to other customary representations, warranties and covenants, it requires the Company to comply with certain financial covenants. During 2011 the Credit Agreement was amended so that the previous Debt Service Coverage Ratio was replaced with a requirement to meet minimum Consolidated EBITDA levels (as defined) on a quarterly basis through the third quarter ended September 30, 2012. The Debt Service Coverage Ratio will be reinstituted for the trailing four quarters ended December 31, 2012 at a minimum of 1.10 to 1.00 and increases to 1.20 to 1.00 for the trailing four quarters ended March 31, 2013 and each quarter thereafter. Additionally, the Company must comply with a minimum cash plus accounts receivable and inventory to debt ratio and maintain a minimum tangible net worth. On December 31, 2011, the Company was in compliance with of all of the financial covenant levels as detailed below:


Covenant	Requirement	Actual
Minimum EBITDA (loss), as defined in the amended Credit Agreement	$ (5.0) million	$ (3.7) million
Minimum cash plus accounts receivable and inventory to debt ratio	1.75:1.00	55.35:1.00
Minimum tangible net worth	$ 55.0 million	$ 80.9 million

At December 31, 2011, the Company had no outstanding balance under the revolving line and $1.8 million of outstanding letters of credit, leaving borrowing availability of $53.2 million. The Company paid interest of $0.1 million, $0.2 million and $0.3 million in 2011, 2010 and 2009, respectively. The weighted average interest rate charged on outstanding loans was 1.52% for the year ended December 31, 2011.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Reserve for Severance

12 Months Ended

Dec. 31, 2011

Reserve for Severance [Abstract]

Reserve for Severance

Note 10 — Reserve for Severance

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

		September 30,			September 30,			September 30,
	(Dollars in thousands) Year Ended December 31,
	2011			2010			2009

Beginning balance	$	3,062		$	4,086		$	6,012
Charged to earnings current year		1,614			3,629			6,228
Cash paid and exchange rate variance		(3,394	)		(4,653	)		(8,154	)

Ending balance	$	1,282		$	3,062		$	4,086

Accrued severance charges were included in the line items of the Consolidated Balance Sheets at December 31, 2011 and 2010 as follows:

		September 30,		September 30,
	(Dollars in thousands) December 31,
	2011		2010
Accrued severance included in:
Accrued expenses and other liabilities	$	1,187	$	2,229
Noncurrent other		95		833

Total accrued severance	$	1,282	$	3,062

The remaining benefits outstanding as of December 31, 2011 will be fully paid by the end of 2013.

Retirement and Security Bonus Plans

12 Months Ended

Dec. 31, 2011

Retirement and Security Bonus Plans [Abstract]

Retirement and Security Bonus Plans

Note 11 — Retirement and Security Bonus Plans

The Company has a retirement plan with a profit sharing feature 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 $2.5 million, $2.4 million and $2.0 million for the years ended December 31, 2011, 2010 and 2009, respectively.

The Company has a security bonus plan for the benefit of its independent sales representatives, under the terms of which participants are credited with a percentage of their yearly 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. For financial reporting purposes, amounts are charged to operations over the vesting period. Expenses incurred for the security bonus plan were $2.1 million, $1.9 million and $2.1 million for the years ended December 31, 2011, 2010 and 2009, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 12 — Commitments and Contingencies

Lease Commitments

Total rental expense for the years ended December 31, 2011, 2010 and 2009 amounted to $0.8 million, $1.4 million and $1.3 million, respectively. In 2011 the Company entered into a 10 year build-to-suit lease for the new McCook Facility which expires in June 2022 and includes total future minimum lease payments of $14.8 million.

The Company also entered into an 11 year operating lease for the new headquarters which expires in March 2023 and includes total future minimum lease payments of $12.2 million.

The Company’s future minimum lease commitments, principally for facilities and equipment, as of December 31, 2011, were as follows:

		September 30,		September 30,		September 30,
Year ended December 31,	Operating Leases		Build-to-suit Lease ⁽¹⁾		Capital Leases

2012	$	1,170	$	623	$	237
2013		1,214		1,264		102
2014		1,048		1,302		77
2015		1,001		1,342		—
2016		1,044		1,382		—
Thereafter		7,505		8,887		—

Total	$	12,982	$	14,800	$	416

Less: Interest portion						(61	)

Liability					$	355

(1)	Relates to the McCook, Illinois distribution center lease under construction.

Litigation, regulatory and tax matters

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 or results of operations.

One of the Company’s subsidiaries, Drummond American LLC (“Drummond”) is under an employment tax examination for the years 2007 and 2008 of the long-standing treatment of its sales representatives as independent contractors. In January 2012, the Company has received a Notice of Proposed Adjustment in the amount of $9.5 million, including penalties, from the IRS challenging Drummond’s position that the sales representatives were independent contractors. Although the Company intends to vigorously defend its position for the treatment of its sales representatives as independent contractors the Company established a liability of $1.2 million as its best estimate of the cost to resolve this matter. An unfavorable outcome of this matter could have a material adverse effect on the Company’s business, financial condition and results of operation.

In August 2008, the Company entered into a Deferred Prosecution Agreement (“DPA”) with the U.S. Attorney’s Office in connection with representatives of the Company improperly providing gifts or awards to purchasing agents through the Company’s customer loyalty programs. Pursuant to the DPA, the Company agreed to a $30.0 million penalty. The Company paid $10.0 million in 2010 and 2009 in accordance with this agreement which expired in 2011.

The Company has identified that it had shipped a limited number of products in violation of certain state environmental regulations. The Company reported its findings to appropriate regulatory agencies. The Company also recalled a limited number of products and is working with state regulators to take appropriate remedial actions to comply with these environmental regulations. At December 31, 2011, the Company had accrued $0.2 million for penalties and expenses related to environmental matters and at this time, the Company cannot determine if any further expenses may be incurred.

The Company has identified certain services and benefits that were not properly reported on information returns with respect to its independent sales representatives. The Company has notified the Internal Revenue Service Employment Tax Division and has established procedures to improve proper information reporting practices. At this time, the Company cannot determine if further actions may result from this review. The Company established a liability of $0.1 million as its best estimate of the cost to resolve this matter.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Stock Compensation Plans

12 Months Ended

Dec. 31, 2011

Stock Compensation Plans [Abstract]

Stock Compensation Plans

Note 13 — Stock Compensation Plans

The Company’s 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. Under the Equity Plan, 500,000 shares of common stock were available to be awarded with no participant being granted more than 40,000 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 has a Stock Performance Rights Plan (“SPR Plan”) that provides for the issuance of Stock Performance Rights 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.

Service based awards

Service based awards require the participants to provide service to the Company over a fixed period of time. The Company has three award types that are based solely on a service condition: Stock Performance Rights (“SPRs”), Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”).

Stock Performance Rights

SPRs have a seven or ten year life and vest ratably over three years beginning on the first anniversary of the date of the grant. 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 measurement date, is recorded ratably over the vesting period. Employees and non-employee directors who are retirement eligible, defined as age 65 or older, are permitted to retain their awards after retirement and exercise them during the remaining contractual life. All expense is recognized on the date of grant for SPRs granted to retirement eligible recipients. Compensation expense or benefit is included in Selling, general and administrative expense.

On December 31, 2011, 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, 2011 was $3.91 per SPR using the Black-Scholes valuation model with the following assumptions:

		September 30,
Expected volatility		50.7% to 74.4%
Risk-free rate of return		0.1% to 0.5%
Expected term (in years)		0.5 to 3.6
Expected annual dividend		$0.48

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 due to insufficient historical data. The estimated annual dividend was based on the recent dividend payout trend.

A benefit of $1.1 million was recognized for the year ended December 31, 2011 as the overall decline in the fair value of the SPRs exceeded the amortization expense related to the unvested SPRs. Compensation expense of $0.8 million was recorded for the year ended December 31, 2010 and no expense or benefit was incurred in 2009 as the decrease in the SPRs value was offset by the amortization expense. No cash has been paid out for SPR exercises during the three year period ended December 31, 2011.

Activity related to the Company’s SPRs during the year ended December 31, 2011 was as follows:

		September 30,			September 30,
	Number of SPRs			Weighted Average Exercise Price

Outstanding on December 31, 2010		302,250		$	27.54
Cancelled		(26,050	)		27.05

Outstanding on December 31, 2011		276,200			27.58


Exercisable on December 31, 2011		246,834		$	28.78

The SPRs outstanding had an immaterial intrinsic value as of December 31, 2011. Unrecognized compensation cost related to non-vested SPRs was $0.1 million at December 31, 2011, which will be recognized over a weighted average period of one year. During the year ended December 31, 2011, 56,333 SPRs with a fair value of $0.3 million vested. At December 31, 2011, the weighted average remaining contractual term was 5.1 years for all outstanding SPRs and also for the all exercisable SPRs.

Restricted Stock Awards

Restricted stock awards vest ratably over a one to three year period beginning on the first anniversary of the date of the grant. On each vesting date the vested restricted stock awards are exchanged for an equal number of the Company’s common stock. Common stock received by the participant cannot be transferred until either the end of the three year term or employment with the Company is terminated without cause. The participants have no voting or dividend rights with the restricted stock awards or the common shares received through vesting until the final vesting date unless they leave the Company without cause. 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.

Activity related to the Company’s RSAs during the year ended December 31, 2011 was as follows:

		September 30,
	Restricted Stock Awards

Outstanding on December 31, 2010		59,765
Granted		52,149
Exchanged for common shares		(46,719	)
Cancelled		(1,805	)

Outstanding on December 31, 2011		63,390

An expense of $0.7 million and $0.5 million was recorded in Selling, general and administrative expenses in 2011 and 2010, respectively. As of December 31, 2011, there was $0.6 million of total unrecognized compensation cost related to RSAs that will be recognized over a weighted average period of 1.2 years. The awards granted in 2011 had a weighted average grant date fair value of $19.78 per share.

Restricted Stock Units

RSUs can be exchanged for either the Company’s common stock or the equivalent value in cash on the vesting date. In April, 2010 the Company issued 30,944 RSUs which vested in April 2011. All of the vested RSUs were exchanged for cash in the amount of $0.7 million. An expense of $0.2 million and $0.5 million was recorded in Selling, general and administrative expenses in 2011 and 2010, respectively. As of December 31, 2011, there were no outstanding RSUs.

Performance based awards

The Company has three Long-Term Incentive Plans. One plan was established for both the Company’s Senior Executive Officers and the Company’s Vice Presidents covering the 2011 to 2013 performance period (“2011 LTIP”) and two plans covering the 2010 to 2012 performance period; one for the Senior Executive Officers (“2010 SEO LTIP”) and one for the Company’s Vice Presidents (“2010 VP LTIP”). Awards under these plans are contingent on the level of financial performance of the Company over the performance period compared to pre-established targets. An expense of $0.2 million and $0.4 million for performance based awards for 2011 and 2010, respectively, was included in Selling, general and administrative expense.

2011 LTIP

The performance based portion of the 2011 LTIP will be awarded in cash at the end of the three year period. The 2011 LTIP also includes an RSA component based on service only. These RSAs have been included in the Service Awards Based section above.

2010 SEO LTIP

Participants in the 2010 SEO LTIP can earn one-third of the total target award if the financial performance of the Company exceeds the established threshold levels for each year. At the end of the three-year performance period, the average actual results for the three years will be determined and the achievement calculated as a percent of the average annual goals for the entire performance period. The award for each fiscal year will then be adjusted based on the average annual results achieved. If a certain minimum performance level is not attained for the three year period, no award will be earned for any of the three years.

Under the terms of the 2010 SEO LTIP, at the end of the three year period, one half of the amount earned is payable in cash and one half is payable in the Company’s common stock. The maximum amount of stock that could be issued, assuming the December 31, 2012 closing price of the stock remained at the December 31, 2011 closing price of $15.43 would be 81,772 shares.

2010 VP LTIP

Participants in the 2010 VP LTIP can earn one-third of the total target award if the financial performance of the Company exceeds the established threshold levels for each year. The 2010 VP LTIP is payable one half in restricted stock and one half in non-qualified stock options. As of December 31, 2011, there were 13,112 shares of restricted stock and 27,661 non-qualified stock options with a weighted average exercise price of $14.05 outstanding that represents the maximum amount that can be earned by the participants over the three year period. These amounts may be reduced based on the Company’s financial performance over the upcoming years.

A portion of the total 2010 VP LTIP can be earned each year; 30% in 2010, 30% in 2011 and 40% in 2012. The awards are earned each year and vest at the end of the three year period. If certain minimum performance levels are not attained in any given year, no award will be earned that year.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 718
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

Sale of Distribution Centers

12 Months Ended

Dec. 31, 2011

Sale of Distribution Centers [Abstract]

Sale of Distribution Centers

Note 14 — Sale of Distribution Centers

In 2010, the Company sold its Dallas, Texas distribution center receiving cash proceeds of $2.0 million resulting in a gain of $1.7 million. In 2009, the Company closed its Charlotte, North Carolina and Dallas, Texas distribution centers. The Company sold its Charlotte, North Carolina distribution center in 2009 receiving proceeds of $2.2 million in cash.

Other Operating Expenses (Income)

12 Months Ended

Dec. 31, 2011

Other Operating Expenses (Income) [Abstract]

Other Operating Expenses (Income)

Note 15 — Other Operating Expenses (Income)

Other Operating (Income) Expenses consisted of the following:

		September 30,		September 30,			September 30,
	(Dollars in thousands) Year Ended December 31,
	2011		2010			2009

Employment tax matter	$	1,200	$	—		$	—
Impairment of long-lived assets		1,146		—			327
Share settlement		—		(4,050	)		—
Other		—		—			154

Ending balance	$	2,346	$	(4,050	)	$	481

In 2011, the Company recorded a $1.2 million expense for the estimated cost of settling an employment tax matter related to the classification of the sales representatives of one of the Company’s subsidiaries. For further details, see Note 12 – Commitments and Contingencies.

Also in 2011, an impairment charge of $1.1 million was incurred related to certain assets in our OEM segment.

In 2010, the Company recorded a $4.1 million benefit related to proceeds received from a settlement agreement and legal remedies related to the actions of several former sales representatives and the Share Corporation (“Share”) alleging, among other things, breach of contract and interference with customer relationships. In exchange for the proceeds, the Company agreed to settle all related claims with Share and the former sales representatives.

Other operating expenses in 2009 include $0.2 million related to the investigation by the U.S. Attorney’s Office for the Northern District of Illinois as to whether our sales representatives provided improper gifts or awards to purchasing agents through the Company’s customer loyalty programs. Additionally, in 2009, an impairment charge of $0.3 million was incurred to reduce the carrying value of certain property, plant and equipment to fair value.

Discontinued operations

12 Months Ended

Dec. 31, 2011

Discontinued operations [Abstract]

Discontinued operations

Note 16 — Discontinued operations

Assembly Component Systems, Inc.

In 2010, the Company sold substantially all of the assets of Assembly Component Systems, Inc. (“ACS”), a wholly owned subsidiary, to Supply Technologies LLC (“Supply Technologies”), a wholly owned company of Park-Ohio Holdings Corp. Under terms of the Asset Purchase Agreement, Supply Technologies purchased substantially all of the assets of ACS for $19.0 million plus the assumption of certain liabilities. Of the total consideration, $16.0 million was paid to Lawson in cash on September 1, 2010. The remaining balance was subject to the terms of a subordinated promissory note between Supply Technologies and Lawson. A $3.5 million pre-tax loss on the sale was recorded in 2010. As of December 31, 2011, $0.9 million of the note was still outstanding and is classified as current under Miscellaneous receivables and prepaid expenses.

Rutland Tool & Supply Company, Inc.

In 2010, the Company sold substantially all of the assets of Rutland Tool & Supply Company, Inc. to Sid Tool Co. Inc., a wholly owned subsidiary of MSC Industrial Direct Co., Inc., for approximately $11.0 million in cash plus the assumption of certain liabilities. A $0.4 million pre-tax loss on the sale was recorded in 2010.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2011

Earnings (Loss) Per Share [Abstract]

Earnings (Loss) Per Share

Note 17 — Earnings (Loss) Per Share

The computation of basic and diluted earnings (loss) per share consisted of the following:

		September 30,			September 30,			September 30,
	(Dollars in thousands, except per share data) Year Ended December 31,
	2011			2010			2009
Weighted average shares:
Basic weighted average shares outstanding		8,553			8,522			8,522
Effect of dilutive securities outstanding		—			15			—

Diluted weighted average shares outstanding		8,553			8,537			8,522


Earnings (loss):
Continuing operations	$	(4,389	)	$	9,590		$	1,912
Discontinued operations		(235	)		(2,653	)		(4,648	)

Net income (loss)	$	(4,624	)	$	6,937		$	(2,736	)


Basic earnings (loss) per share of common stock:
Continuing operations	$	(0.51	)	$	1.13		$	0.22
Discontinued operations		(0.03	)		(0.32	)		(0.54	)

Net income (loss)	$	(0.54	)	$	0.81		$	(0.32	)


Diluted earnings (loss) per share of common stock:
Continuing operations	$	(0.51	)	$	1.12		$	0.22
Discontinued operations		(0.03	)		(0.31	)		(0.54	)

Net income (loss)	$	(0.54	)	$	0.81		$	(0.32	)

The effect of restricted share awards outstanding and future stock option exercises for the years ended December 31, 2011 and 2009 would have been anti-dilutive and therefore, were excluded from the computation of diluted earnings per share.

Related Party Transaction

12 Months Ended

Dec. 31, 2011

Related Party Transaction

Note 18 — Related Party Transaction

The Company’s Chairman of the Board, Dr. Port, was a partner in two partnerships that had an interest in Lawson’s common stock. During 2010, litigation was initiated against Dr. Port, requesting that the partnerships be changed to allow the partners to have more control over their respective shares. The suit named Dr. Port as a defendant based on his role in the partnerships and as a Director of the Company. The Company was not a party to the lawsuit.

In March, 2011 the litigation was settled with assets distributed under the terms of a settlement agreement and all parties agreed to release Dr. Port, individually and as a Director of the Company, from any and all claims related to the litigation. In 2011 and 2010 the Company incurred $0.1 million and $0.7 million, respectively, for legal services provided to Dr. Port in relation to this litigation.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

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-Number 210
-Article 3A
-Section 04
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-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

Note 19 — Segment Reporting

The Company has two operating segments: MRO and OEM. The Company’s MRO segment is a distributor of products and services to the industrial, commercial, institutional, and governmental maintenance repair and operations marketplace. The Company’s OEM segment manufactures, sells and distributes production and specialized component parts to the original equipment marketplace. The Company’s two reportable segments are distinguished by the nature of products distributed and sold, types of customers and manner of servicing them. The Company evaluates performance and allocates resources to reportable segments primarily based on operating income. The accounting policies of the segments are the same as those described in Note 2 – Significant Accounting Policies.

Financial information for the Company’s reportable segments from continuing operations consisted of the following:

		September 30,			September 30,			September 30,
	(Dollars in thousands) Year Ended December 31,
	2011			2010			2009
Net sales
MRO	$	300,399		$	303,138		$	289,715
OEM		14,560			13,642			12,054

Consolidated total	$	314,959		$	316,780		$	301,769


Operating income (loss)
MRO	$	(2,466	)	$	14,522		$	9,256
OEM		952			283			(1,118	)
Severance expenses		(1,614	)		(3,629	)		(6,228	)
Gain (loss) on sale of assets		(22	)		1,701			(16	)
Other operating income (expense)		(2,346	)		4,050			(481	)

Consolidated total		(5,496	)		16,927			1,413

Interest expense		(681	)		(391	)		(1,037	)
Other income, net		101			160			1,029

Income (loss) from continuing operations before income taxes	$	(6,076	)	$	16,696		$	1,405


Capital expenditures
MRO	$	11,066		$	10,038		$	2,008
OEM		66			10			713

Consolidated total	$	11,132		$	10,048		$	2,721


Depreciation and amortization
MRO	$	5,342		$	5,900		$	6,031
OEM		362			406			476

Consolidated total	$	5,704		$	6,306		$	6,507


Total assets
MRO	$	194,422		$	210,273		$	167,394
OEM		10,336			9,749			12,428

Segment total		204,758			220,022			179,822
Corporate		17,580			15,743			20,068
Discontinued operations		410			619			41,757

Consolidated total	$	222,748		$	236,384		$	241,647

Financial information related to the Company’s continuing operations by geographic area consisted of the following:

		September 30,		September 30,		September 30,
	(Dollars in thousands) Year Ended December 31,
	2011		2010		2009
Net sales
United States	$	285,071	$	288,054	$	276,116
Canada		29,888		28,726		25,653

Consolidated total	$	314,959	$	316,780	$	301,769


Long-lived assets
United States	$	49,353	$	41,006	$	36,911
Canada		3,349		3,436		3,417

Consolidated total	$	52,702	$	44,442	$	40,328

Net sales are attributed to countries based on the location of customers. Long-lived assets consist of property, plant and equipment.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Summary of Unaudited Quarterly Results of Operations

12 Months Ended

Dec. 31, 2011

Summary of Unaudited Quarterly Results of Operations [Abstract]

Summary of Unaudited Quarterly Results of Operations

Note 20 — Summary of Unaudited Quarterly Results of Operations

Unaudited quarterly results of operations for the years ended December 31, 2011 and 2010 are summarized as follows:

		September 30,			September 30,			September 30,			September 30,
	(Dollars in thousands, except per share data) 2011 Quarter Ended
	Dec. 31			Sep. 30			June 30			Mar. 31

Net sales	$	72,860		$	75,366		$	84,154		$	82,579
Gross profit		38,993			42,546			48,299			49,939

Income (loss) from continuing operations (1)	$	(5,373	)	$	(2,154	)	$	1,088		$	2,050
Loss from discontinued operations		(174	)		(9	)		(22	)		(30	)

Net income (loss)	$	(5,547	)	$	(2,163	)	$	1,066		$	2,020


Basic income (loss) per share of common stock:
Continuing operations (2)	$	(0.63	)	$	(0.25	)	$	0.13		$	0.24
Discontinued operations (2)		(0.02	)		—			(0.01	)		—

Net income (loss) (2)	$	(0.65	)	$	(0.25	)	$	0.12		$	0.24


Diluted income (loss) per share of common stock:
Continuing operations (2)	$	(0.63	)	$	(0.25	)	$	0.13		$	0.24
Discontinued operations (2)		(0.02	)		—			(0.01	)		(0.01	)

Net income (loss) (2)	$	(0.65	)	$	(0.25	)	$	0.12		$	0.23

		September 30,			September 30,			September 30,		September 30,
	2010 Quarter Ended
	Dec. 31			Sep. 30			June 30		Mar. 31

Net sales	$	80,012		$	81,553		$	80,305	$	74,910
Gross profit		49,764			49,948			48,789		46,325

Income from continuing operations (3)	$	112		$	5,766		$	1,480	$	2,232
Income (loss) from discontinued operations		(623	)		(2,337	)		207		100

Net Income (loss)	$	(511	)	$	3,429		$	1,687	$	2,332


Basic and diluted income (loss) per share of common stock:
Continuing operations (2)	$	0.01		$	0.68		$	0.17	$	0.26
Discontinued operations (2)		(0.07	)		(0.28	)		0.03		0.01

Net Income (loss)	$	(0.06	)	$	0.40		$	0.20	$	0.27

(1)	Loss from continuing operations for the three months ended December 31, 2011 includes an $0.8 million net expense for the estimated cost of settling an employment tax matter and a net $0.8 million asset impairment charge.

(2)	The sum of the quarterly earnings per share amounts may not equal the total annual earnings per share due to rounding and the uneven timing of earnings throughout the year compared to the weighted average shares outstanding.

(3)

Income from continuing operations for the three months ended September 31, 2010 and March 31, 2010, respectively, includes a net benefit of $2.1 million and $0.3 million related to the Share litigation. Income from continuing operations for the three months ended March 31, 2010 includes a net gain of $1.0 million from the sale of the Dallas, Texas distribution center.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2011

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

Lawson Products, Inc.

Schedule II – Valuation and Qualifying Accounts

The roll forward of valuation accounts were as follows:

		September 30,		September 30,			September 30,			September 30,
	(Dollars in thousands)
Description	Balance at Beginning of Period		Charged to Costs and Expenses			Deductions			Balance at End of Period

Allowance for doubtful accounts:
Year ended December 31, 2011	$	1,085	$	1,500		$	(673	) (1)	$	1,912
Year ended December 31, 2010		882		883			(680	) (1)		1,085
Year ended December 31, 2009		871		1,222			(1,211	) (1)		882

Allowance for excess and obsolete inventory:
Year ended December 31, 2011	$	4,711	$	1,103		$	(768	) (2)	$	5,046
Year ended December 31, 2010		4,748		110			(147	) (2)		4,711
Year ended December 31, 2009		4,778		319			(349	) (2)		4,748

Valuation allowance for deferred tax assets:
Year ended December 31, 2011	$	875	$	63		$	—		$	938
Year ended December 31, 2010		1,744		—			(869	) (3)		875
Year ended December 31, 2009		2,854		(536	)		(574	) (3)		1,744

(1)	Uncollected receivables written off, net of recoveries and translation adjustment.

(2)	Disposal of excess and obsolete inventory and translation adjustment.

(3)	Capital loss carryforward written off.