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ACU:Y
Q2
2013
3179777
9750000
8458000
7141000
7853000
16442000
25420000
1925000
2115000
58409000
65443000
291000
289000
2294000
2281000
8283000
8683000
8515000
8900000
1702000
1669000
1124000
1115000
67828000
74736000
56115000
63521000
6107000
6221000
5606000
4994000
6480000
9092000
5250000
5401000
11730000
14493000
24320000
26012000
36962000
41526000
11218000
11353000
67828000
74736000
10868000
11253000
2353000
2353000
912000
1021000
12283000
12283000
2.50
2.50
8000000
8000000
4487524
4541849
1362072
1362072
455000
421000
135000
98000
272000
233000
9181000
10934000
-667000
1914000
2637000
5048000
69000
1644000
-5096000
-5877000
463000
233000
50000
52000
-513000
-1759000
3000
-46000
150000
473000
-2576000
-3557000
1692000
5436000
1794000
4650000
-1292000
-712000
3706000
2753000
571000
212000
3267000
463000
-24000
3536000
3078000
3192000
2701000
2587000
475000
521000
16000
-30000
3144000
3118000
3103000
3156000
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3266000
2223000
2222000
1738000
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-98000
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-38000
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Balance
at <br />
December 31, 2012</b></font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Payments</b></font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Balance
at <br />
June 30, 2013</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"> </td>
<td style="text-align: center; vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="border-bottom: Black 3pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">$  124</font></td>
<td nowrap="nowrap" style="border-bottom: Black 3pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"></td>
<td style="text-align: center; vertical-align: bottom; border-bottom: Black 3pt double"><font style="font: 9pt Times New Roman, Times, Serif">$  (43)</font></td>
<td style="border-bottom: Black 3pt double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: Black 3pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">$  81</font></td>
</tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
2500000
2000000
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">In December 2008, the Company sold property it owned in Bridgeport, Connecticut to B&E Juices, Inc. for $2.5 million, of which
$2.0 million is secured by a mortgage on the property.  The property consists of approximately four acres of land and
48,000 sq. feet of warehouse space.  The property was the site of the Company’s original scissor factory which
opened in 1887 and was closed in 1996.</p>
1800000
2
43000
43000
17000
17000
54000
75000
28000
28000
5000
5000
2000
2000
87000
85000
43000
43000
24319829
26011829
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b>Note 5— Segment Information</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="color: black">The Company reports financial information
based on the organizational structure used by management for making operating and investment decisions and for assessing performance.
The Company’s reportable business segments consist of: (1) United States; (2) Canada and (3) Europe. As described below,
the activities of the Company’s Asian operations are closely linked to those of the U.S. operations; accordingly, management
reviews the financial results of both on a consolidated basis, and the results of the Asian operations have been aggregated with
the results of the United States operations to form one reportable segment called the “United States segment” or “U.S.
segment”. </font>Each reportable segment derives its revenue from the sales of cutting devices, measuring instruments and
safety products for school, office, home, hardware and industrial use.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Domestic sales orders are filled from the Company’s distribution
center in North Carolina. The Company is responsible for the costs of shipping, insurance, customs clearance, duties, storage and
distribution related to such products. Orders filled from the Company’s inventory are generally for less than container-sized
lots.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Direct import sales are products sold by the Company’s Asian
subsidiary, directly to major U.S. retailers, who take ownership of the products in Asia. These sales are completed by delivering
product to the customers’ common carriers at the shipping points in Asia. Direct import sales are made in larger quantities
than domestic sales, typically full containers. Direct import sales represented approximately 27% and 21% of the Company’s
total net sales for the three and six months ended June 30, 2013 compared to 28% and 22% for the comparable periods in 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="color: black">The chief operating decision maker evaluates
the performance of each operating segment based on segment revenues and operating income. </font>Segment amounts are presented
after converting to U.S. dollars and consolidating eliminations.<font style="color: black"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Financial data by segment:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">(in thousands)</font></p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"> </p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended <br />
June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six months ended <br />
June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Sales to external customers:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 36%; text-align: left; padding-left: 10pt">United States</td><td style="width: 3%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">23,496</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">22,563</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">37,721</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">35,160</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,139</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,310</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,765</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,967</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,777</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,721</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,577</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,345</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">28,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,594</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">46,063</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">44,472</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Operating income (loss):</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt">United States</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,701</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,587</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,267</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,753</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">475</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">521</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">463</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">571</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(30</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(24</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">212</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,192</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,078</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,706</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,536</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt">Interest expense, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">62</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">142</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other expense (income), net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">25</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">43</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">86</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Consolidated income before taxes</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,093</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,793</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,536</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,333</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"> </p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td>Assets by segment:</td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td>( in thousands )</td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left">United States</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">63,521</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 3%; text-align: left">$</td><td style="width: 14%; text-align: right">56,115</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,221</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,107</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,994</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,606</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">74,736</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">67,828</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt 10pt; text-indent: -10pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Financial data by segment:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">(in thousands)</font></p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"> </p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended <br />
June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six months ended <br />
June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Sales to external customers:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 36%; text-align: left; padding-left: 10pt">United States</td><td style="width: 3%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">23,496</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">22,563</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">37,721</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">35,160</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,139</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,310</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,765</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,967</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,777</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,721</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,577</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,345</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">28,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,594</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">46,063</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">44,472</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Operating income (loss):</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt">United States</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,701</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,587</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,267</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,753</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">475</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">521</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">463</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">571</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(30</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(24</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">212</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,192</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,078</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,706</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,536</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt">Interest expense, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">62</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">142</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other expense (income), net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">25</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">43</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">86</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Consolidated income before taxes</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,093</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,793</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,536</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,333</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b>Note 8 – Business Combination</b></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">On June 7, 2012, the Company purchased certain
assets of The C-Thru Ruler Company (“C-Thru”), a leading supplier of drafting, measuring, lettering and stencil products.
The Company purchased inventory and intellectual property for approximately $1.47 million using funds borrowed under its revolving
credit facility with HSBC. <font style="color: black">The Company recorded approximately $0.42 million for inventory, as well as
approximately $1.05 million for intangible assets, consisting primarily of customer relationships.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Assuming C-Thru was acquired on January 1, 2012,
unaudited proforma combined net sales for the three and six months ended June 30, 2012 for the Company would have been approximately
$28.2 million and $45.6 million, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Unaudited net income for the three and six months
ended June 30, 2012 attributable to C-Thru were not material to the Company’s financial statements for those periods.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
1470000
45600000
28200000
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1050000
0.0175
0.0175
30000000
40000000
-77000
-95000
-39000
-39000
0000002098
10-Q
2013-06-30
false
--12-31
No
No
Yes
Smaller Reporting Company
28819000
27553000
71000
21000
1402000
1876000
5636000
6096000
27082000
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16509000
15765000
9821000
10081000
12803000
12229000
6743000
6889000
249000
193000
91000
122000
106000
76000
29000
48000
-142000
-117000
-62000
-74000
-28000
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-25000
-171000
-203000
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-99000
3536000
3333000
2973000
3093000
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24000
41000
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322000
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219000
437000
370000
30866000
33210000
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: left">Note 1 — Basis of Presentation</p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in">In the opinion of management,
the accompanying condensed consolidated financial statements include all adjustments necessary to present fairly the financial
position, results of operations and cash flows of Acme United Corporation (the “Company”). These adjustments are of
a normal, recurring nature. However, the financial statements do not include all of the disclosures normally required by accounting
principles generally accepted in the United States of America or those normally made in the Company's Annual Report on Form 10-K.
Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2012 for such disclosures. The condensed
consolidated balance sheet as of December 31, 2012 was derived from the audited consolidated balance sheet as of that date. The
results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The information
included in this Quarterly Report on Form 10-Q should be read in conjunction with the Management’s Discussion and Analysis
of Financial Condition and Results of Operations and the financial statements and notes thereto, included in the Company’s
2012 Annual Report on Form 10-K.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in">The Company has evaluated
events and transactions subsequent to June 30, 2013 and through the date these condensed consolidated financial statements were
included in this Form 10-Q and filed with the SEC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in">Recent accounting pronouncements</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In February 2013, the
Financial Accounting Standards Board (the “FASB”) issued a final rule related to the reporting of amounts reclassified
out of accumulated other comprehensive income that requires entities to report, either on their income statement or in a footnote
to their financial statements, the effects on earnings from items that are reclassified out of other comprehensive income. This
standard update is effective for reporting periods beginning after December 15, 2012. The adoption of this accounting standard
did not have an impact on our consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 2 — Contingencies</p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is involved from time to time
in disputes and other litigation in the ordinary course of business and may encounter other contingencies, which may include environmental
and other matters. The Company presently has no matters other than the environmental remediation accrual described below.</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0">In December 2008, the Company sold property it owned in Bridgeport,
Connecticut to B&E Juices, Inc. for $2.5 million, of which $2.0 million is secured by a mortgage on the property. The property
consists of approximately four acres of land and 48,000 sq. feet of warehouse space. The property was the site of the Company’s
original scissor factory which opened in 1887 and was closed in 1996.</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the terms of the sale agreement, and as required by the Connecticut
Transfer Act, the Company is required to remediate any environmental contamination on the property. During 2008, the Company hired
an independent environmental consulting firm to conduct environmental studies in order to identify the extent of the environmental
contamination on the property and to develop a remediation plan. As a result of those studies and the estimates prepared by the
independent environmental consulting firm, the Company recorded an undiscounted liability of approximately $1.8 million related
to the remediation of the property. This accrual included the costs of required investigation, remedial activities, and post-remediation
operating and maintenance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The remediation work, which began in the third quarter of 2009,
was completed during the third quarter of 2012. The Company, with the assistance of its independent environmental consulting firm,
must continue to monitor contaminant levels on the property to ensure they comply with set governmental standards. The Company
expects that the monitoring period could last a minimum of two years. At June 30, 2013, the Company had approximately $81,000 remaining
in its accrual for post-remediation monitoring and project closing costs, of which approximately $22,000 was classified as a current
liability.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The change in the accrual for environmental
remediation for the six months ended June 30, 2013 follows <font style="color: black">(in thousands)</font>:</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Balance
at <br />
December 31, 2012</b></font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Payments</b></font></td>
<td style="border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Balance
at <br />
June 30, 2013</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td nowrap="nowrap" style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"> </td>
<td style="text-align: center; vertical-align: bottom"> </td>
<td> </td>
<td nowrap="nowrap" style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="border-bottom: Black 3pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">$  124</font></td>
<td nowrap="nowrap" style="border-bottom: Black 3pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"></td>
<td style="text-align: center; vertical-align: bottom; border-bottom: Black 3pt double"><font style="font: 9pt Times New Roman, Times, Serif">$  (43)</font></td>
<td style="border-bottom: Black 3pt double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: Black 3pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">$  81</font></td>
</tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Also, as part of the sale, the Company
provided the buyer with a mortgage of $2.0 million at six percent interest per year. The mortgage is payable in monthly installments
of principal and interest with the outstanding balance due in full, one year after remediation and monitoring on the property
have been completed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><b>Note 3 —</b> <b>Pension</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><b> </b></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Components of net periodic benefit cost
are as follows (in thousands):</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="5" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</td>
<td> </td>
<td colspan="5" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</td>
<td> </td>
</tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td> <td> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td> <td> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td> <td> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td> <td> </td>
</tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Components of net periodic benefit cost:</td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 42%; text-align: left">Interest cost</td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">17</td><td style="width: 3%; text-align: left"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">17</td><td style="width: 3%; text-align: left"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">43</td><td style="width: 3%; text-align: left"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">43</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Service cost</td>
<td style="text-align: left"> </td><td style="text-align: right">12</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">12</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">17</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Expected return on plan assets</td>
<td style="text-align: left"> </td><td style="text-align: right">(28</td><td style="text-align: left">)</td>
<td style="text-align: left"> </td><td style="text-align: right">(28</td><td style="text-align: left">)</td>
<td style="text-align: left"> </td><td style="text-align: right">(54</td><td style="text-align: left">)</td>
<td style="text-align: left"> </td><td style="text-align: right">(75</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Amortization of prior service costs</td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Amortization of actuarial loss</td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">39</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">39</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">77</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">95</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43</td><td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43</td><td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">87</td><td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">85</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s funding policy with
respect to its qualified plan is to contribute at least the minimum amount required by applicable laws and regulations. In 2013,
the Company is required to contribute approximately $235,000.</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 4 —Debt and Shareholders’ Equity</p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <br /></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On April 25, 2013, the Company amended its revolving loan agreement
with HSBC Bank N.A. dated April 5, 2012. The amendment increased the borrowing limit to $40 million from $30 million. The interest
rate remains the same at LIBOR plus 1.75%. All principal amounts outstanding under the agreement are required to be repaid in a
single amount on April 5, 2017, the date the agreement expires; interest is payable monthly. Funds borrowed under the agreement
may be used for working capital, general operating expenses, share repurchases, acquisitions and certain other purposes. Under
the amended loan agreement, the Company is required to maintain specific amounts of tangible net worth, a debt/net worth ratio,
and a fixed charge coverage ratio.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">As of June 30, 2013 and December 31, 2012, the Company had outstanding
borrowings of $26,011,829 and $24,319,829, respectively, under the Company’s revolving loan agreement with HSBC. Under the
revolving loan agreement, the Company is required to maintain specific amounts of tangible net worth, a specified debt service
coverage ratio, and a fixed charge coverage ratio. At June 30, 2013 the Company was in compliance with these covenants.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">During the first six months of 2013, the Company
issued a total of 53,825 shares of common stock and received aggregate proceeds of $321,992 upon the exercise of employee stock
options.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt 10pt; text-indent: -10pt"><b>Note 6 – Stock Based Compensation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt 10pt; text-indent: -10pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt">The Company recognizes share-based compensation at the fair
value of the equity instrument on the grant date. Compensation expense is recognized over the required service period. Share-based
compensation expenses were $167,410 and $145,237 for the quarters ended June 30, 2013 and 2012, respectively. Share-based compensation
expenses were $272,410 and $232,753 for the six months ended June 30, 2013 and 2012, respectively. During the three months ended
June 30, 2013, the Company issued 20,500 options with a weighted average fair value of $2.75 per share. During the six months ended
June 30, 2013 the Company issued 58,000 options with a weighted average fair value of $2.69.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt">As of June 30, 2013, there was a total of $645,000 of unrecognized
compensation cost, adjusted for estimated forfeitures, related to non-vested share –based payments granted to the Company’s
employees. The remaining unamortized expense is expected to be recognized over a weighted average period of approximately 3 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 7 – Fair Value Measurements</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The carrying value of the Company’s bank debt and note receivable
approximates fair value. Fair value was determined using a discounted cash flow analysis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
22000
.06
235000
17000
18000
12000
12000
2017-04-05
Under the
revolving loan agreement, the Company is required to maintain specific amounts of tangible net worth, a specified debt service
coverage ratio, and a fixed charge coverage ratio. At June 30, 2013 the Company was in compliance with these covenants.
Interest rate of LIBOR plus 1.75%
53825
321992
ACME UNITED CORP
30292000
29450000
46063000
35160000
4967000
4345000
37721000
4765000
3577000
44472000
27594000
28412000
23496000
22563000
3139000
3310000
1777000
1721000
29554000
28707000
17773000
18331000
2520000
2320000
2061000
2210000
.80
.74
.66
.70
.78
.74
.66
.68
4240000
4156000
1032000
1032000
-787000
-1084000
.15
.14
.07
.08
124000
81000
43000
272410
232753
145237
167410
58000
20500
2.69
2.75
645000
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="5" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</td>
<td> </td>
<td colspan="5" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</td>
<td> </td>
</tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td> <td> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td> <td> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td> <td> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td> <td> </td>
</tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Components of net periodic benefit cost:</td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 42%; text-align: left">Interest cost</td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">17</td><td style="width: 3%; text-align: left"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">17</td><td style="width: 3%; text-align: left"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">43</td><td style="width: 3%; text-align: left"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 10%; text-align: right">43</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Service cost</td>
<td style="text-align: left"> </td><td style="text-align: right">12</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">12</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">17</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Expected return on plan assets</td>
<td style="text-align: left"> </td><td style="text-align: right">(28</td><td style="text-align: left">)</td>
<td style="text-align: left"> </td><td style="text-align: right">(28</td><td style="text-align: left">)</td>
<td style="text-align: left"> </td><td style="text-align: right">(54</td><td style="text-align: left">)</td>
<td style="text-align: left"> </td><td style="text-align: right">(75</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Amortization of prior service costs</td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Amortization of actuarial loss</td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">39</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">39</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">77</td><td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">95</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43</td><td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43</td><td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">87</td><td style="padding-bottom: 2.5pt; text-align: left"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">85</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td>Assets by segment:</td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td>( in thousands )</td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left">United States</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">63,521</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 3%; text-align: left">$</td><td style="width: 14%; text-align: right">56,115</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,221</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,107</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,994</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,606</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">74,736</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">67,828</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<p style="font: 9pt Sans-Serif; margin: 0; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt 10pt; text-indent: -10pt"><b> </b></p>
.21
.22
.28
.27
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">In February 2013, the Financial Accounting Standards
Board (the “FASB”) issued a final rule related to the reporting of amounts reclassified out of accumulated other comprehensive
income that requires entities to report, either on their income statement or in a footnote to their financial statements, the
effects on earnings from items that are reclassified out of other comprehensive income. This standard update is effective for
reporting periods beginning after December 15, 2012. The adoption of this accounting standard did not have an impact on our consolidated
financial statements.</font></p>
1474000
P3Y