Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2013 |
Accounting Policies [Abstract] | ' |
Consolidation, Policy [Policy Text Block] | ' |
Consolidation |
|
The consolidated financial statements include the accounts of Omega Protein Corporation and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Accounting, Policy [Policy Text Block] | ' |
Financial Statement Preparation |
|
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Company’s financial statements and the accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual amounts, when available, could differ from those estimates and those differences could have a material effect on the financial statements. |
|
Certain amounts applicable to the prior periods have been reclassified to conform to the classifications currently followed. For the years ended December 31, 2012 and 2011, the Company reclassified $0.2 million and $0.5 million, respectively, of cash flows from investing activities to cash flows from operating activities related to accrued capital expenditures. This revision was not considered to be material, individually or in the aggregate, to previously issued financial statements. The revisions had no effect on the results of operations (net or comprehensive income) or financial condition (stockholders’ equity). |
Legal Costs, Policy [Policy Text Block] | ' |
Gulf of Mexico Oil Spill |
|
In 2010, the Company accounted for $18.7 million in emergency payments received from the Gulf Coast Claims Facility (“GCCF”) during September and October related to damages incurred from the Gulf of Mexico oil spill in its inventory and cost of sales. The payments partially reduced cost of sales by 4.4%, or $8.2 million for the year ended December 31, 2011. |
|
In April 2011, the Company agreed to a final settlement of all of its claims for costs and damages incurred as a result of the oil spill caused by the Deepwater Horizon explosion and received a final payment of $26.2 million, net of fees and expenses, from the GCCF. The amount was recognized as “Proceeds/gains resulting from Gulf of Mexico oil spill” in the Company’s consolidated statement of comprehensive income for the year ended December 31, 2011. |
|
In total, the Company received payments of $44.8 million, net of fees and expenses, from the GCCF in 2010 and 2011. As a part of the final settlement, the Company released and waived all current and future claims against BP and all other potentially responsible parties with regard to the oil spill. |
|
For additional information, see Note 4 – Gulf of Mexico Oil Spill. |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition |
|
The Company derives revenue principally from the sales of a variety of protein and oil products derived from menhaden. In addition and as a result of its recent acquisitions of Cyvex, InCon and WSP, the Company’s revenues also include sales of dietary supplement ingredients to the nutraceutical industry and whey protein products to the food and nutritional supplement industries. The Company recognizes revenue for the sale of its products when price is established, collectability is reasonably assured, and title and rewards of ownership of its products are transferred to the customer. |
Shipping and Handling Cost, Policy [Policy Text Block] | ' |
Shipping and Handling |
|
Amounts billed to customers associated with shipping and handling are included in revenues and the related costs are included in cost of sales. For 2013, 2012 and 2011, $9.4 million, $14.4 million and $16.5 million of shipping and handling costs are included in cost of sales, respectively. |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents |
|
The Company considers cash in banks and short-term investments with original maturities of three months or less as cash and cash equivalents. |
Receivables, Policy [Policy Text Block] | ' |
Allowances for Doubtful Accounts |
|
The Company’s receivables are recorded at net realizable value. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer credit worthiness, past transaction history with the customer, and changes in customer payment terms. If the Company has no previous experience with the customer, the Company typically obtains reports from credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information, including financial statements or other documents (e.g., bank statements), or may obtain a letter of credit from the customer to ensure that the customer has the means of making payment. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. |
Inventory, Policy [Policy Text Block] | ' |
Inventories |
|
Omega Protein’s fishing season runs from mid-April to the first of November in the Gulf of Mexico and from the beginning of May into December in the Atlantic. Government regulations generally preclude Omega Protein from fishing during the off-seasons. |
|
Omega Protein’s inventory cost system considers all costs associated with an annual fish catch and its processing, both variable and fixed, including both costs incurred during the off-season and during the fishing season. Omega Protein’s costing system allocates cost to inventory quantities on a per unit basis as calculated by a formula that considers total estimated inventoriable costs for a fishing season (including off-season costs) to total estimated units of production and the relative fair market value of the individual products produced. Omega Protein adjusts the cost of sales, off-season costs and inventory balances at the end of each quarter based on revised estimates of total inventoriable costs and units of production. Omega Protein’s lower-of-cost-or-market-value analyses at year-end and at interim periods compare the total estimated per unit production cost of Omega Protein’s expected production to the projected per unit market prices of the products. The impairment analyses involve estimates of, among other things, future fish catches and related costs, and expected commodity prices for the fish products as well as projected purchase commitments from customers. These estimates, which management believes are reasonable and supportable, involve estimates of future activities and events which are inherently imprecise and from which actual results may differ materially. |
|
During the off-seasons, in connection with the upcoming fishing seasons, Omega Protein incurs costs (e.g., plant and vessel related labor, utilities, rent, repairs, and depreciation) that are directly related to Omega Protein’s infrastructure. These costs accumulate in inventory and are applied as elements of the cost of production of Omega Protein’s products throughout the fishing season ratably based on Omega Protein’s monthly units of production and the expected total units of production for the season. |
|
Any costs incurred during abnormal downtime related to activity at Omega Protein’s plants are charged to expense as incurred. Such costs were incurred and offset by proceeds received from the Gulf Coast Claims Facility (“GCCF”) during 2011 as a consequence of the Deepwater Horizon explosion and the resulting oil spill in the Gulf of Mexico in April 2010. For additional information, see Note 4 – Gulf of Mexico Oil Spill. |
|
The human nutrition segment generally uses standard costing for inventory it manufactures and FIFO for nutraceutical inventory. The Company’s inventory is stated at the lower of cost or market. |
Insurance Premiums Revenue Recognition, Policy [Policy Text Block] | ' |
Business Interruption Insurance Proceeds |
|
During 2012, the Company received approximately $0.3 million in proceeds, net of deductible, from its business interruption insurance coverage provider related to an incident causing downtime at one of its Gulf of Mexico production facilities in September 2011. The proceeds were calculated based on lost inventory production as well as a small amount of excess costs incurred by the Company as a result of the incident. Given that the Company experienced a slight decrease in production as a result of the incident, the proceeds related to lost inventory production were recognized as an increase in revenues and the proceeds related to excess costs were recognized as a reduction in cost of goods sold. |
Liability Reserve Estimate, Policy [Policy Text Block] | ' |
Insurance |
|
Omega Protein carries insurance for certain losses relating to its vessels and Jones Act liabilities for employees aboard its vessels. Omega Protein records gross insurance reserves by using an estimation process that considers Company-specific and industry information as well as management’s experience, assumptions and consultation with counsel. These reserves include estimated settlement costs. In addition, insurance receivables are recorded for those portions of the claims in excess of Company insurance policy annual aggregate deductibles and stop losses. Management’s current estimated range of liabilities related to such cases is based on claims for which management can estimate the amount and range of loss. For those claims where there may be a range of loss, Omega Protein has recorded an estimated liability inside that range, based on management’s experience, assumptions and consultation with counsel. The process of estimating and establishing reserves for these claims is inherently uncertain and the actual ultimate net cost of a claim may vary materially from the estimated amount reserved. There is some degree of inherent variability in assessing the ultimate amount of losses associated with these claims due to the extended period of time that transpires between when a claim occurs and the full settlement of the claim. This variability is generally greater for Jones Act claims by vessel employees. Omega Protein evaluates loss estimates associated with claims and losses as additional information becomes available and revises its estimates. Although management believes estimated reserves related to these claims are adequately recorded, it is possible that actual results could significantly differ from the recorded reserves, which could materially impact Omega Protein’s business, financial condition or results of operations. |
|
The Company is primarily self-insured for health insurance. The Company purchases individual stop loss coverage with a large deductible. As a result, the Company is primarily self-insured for claims and associated costs up to the amount of the deductible, with claims in excess of the deductible amount being covered by insurance. Expected claims estimates are based on health care trend rates and historical claims data; actual claims may differ from those estimates. The Company evaluates its claims experience related to this coverage with information obtained from its risk management consultants. |
|
Assumptions used in preparing these insurance estimates are based on factors such as claims settlement patterns, claim development trends, claim frequency and severity patterns, inflationary trends and data reasonableness. Together these factors will generally affect the analysis and determination of the “best estimate” of the projected ultimate claim losses. The results of these evaluations are used to both analyze and adjust the Company’s insurance loss reserves. |
|
In addition to the above insurance policies, the Company maintains insurance coverage for property, inventory, workers compensation, general liability, product liability and other items. The nature and extent of the insurance coverage varies by line of policy. |
Advertising Costs, Policy [Policy Text Block] | ' |
Advertising Costs |
|
The costs of advertising are expensed as incurred. |
Research and Development Expense, Policy [Policy Text Block] | ' |
Research and Development |
|
Costs incurred in research and development activities, primarily related to the Omega Protein Technology and Innovation Center, are expensed as incurred. |
Derivatives, Policy [Policy Text Block] | ' |
Energy Swap Agreements |
|
The Company does not enter into financial instruments for trading or speculative purposes. During 2013, 2012 and 2011, Omega Protein entered into energy swap agreements to manage portions of its cash flow exposure related to the volatility of natural gas, diesel and fuel oil energy prices for its fish meal and fish oil production operations. The swaps effectively fix pricing for the quantities listed below during the consumption periods. |
|
Energy Swap | | Consumption Period | Quantity | | Price Per Unit | | | Energy Swap Asset/(Liability) as of | | | Deferred Tax Asset/(Liability) as of | |
December 31, | December 31, |
2013 | 2013 |
Diesel - NYMEX Heating Oil Swap | | Oct. | - | Nov., 2013 | 998,700 Gallons | | $ | 2.88 | | | $ | 131,400 | | | $ | (46,000 | ) |
Natural Gas - NYMEX Natural Gas Swap | | Apr. | - | Oct., 2014 | 307,374 MMBTUs | | $ | 3.67 | | | | 143,200 | | | | (50,100 | ) |
| | | | | | | | | | | $ | 274,600 | | | $ | (96,100 | ) |
|
Energy Swap | | Consumption Period | Quantity | | Price Per Unit | | | Energy Swap Asset/(Liability) as of | | | Deferred Tax Asset/(Liability) as of | |
December 31, | December 31, |
2012 | 2012 |
Diesel - NYMEX Heating Oil Swap | | May | - | November, 2013 | 1,359,782 Gallons | | $ | 2.82 | | | $ | 244,800 | | | $ | (53,800 | ) |
Natural Gas - NYMEX Natural Gas Swap | | April | - | October, 2013 | 381,150 MMBTUs | | $ | 3.94 | | | | (149,600 | ) | | | 52,300 | |
Fuel Oil – No.6 1.0% NY-Platts Swap | | May | - | November, 2013 | 676,200 Gallons | | $ | 2.26 | | | | 39,000 | | | | (13,600 | ) |
| | | | | | | | | | | $ | 134,200 | | | $ | (15,100 | ) |
|
As of December 31, 2013 and 2012, Omega Protein has recorded a current asset in prepaid expenses of $0.3 million and $0.1 million, respectively, to recognize the fair value of energy swap derivatives, and has also recorded a deferred tax liability of $0.1 million and $15,100, respectively, associated therewith. The effective portion of the change in fair value from inception to December 31, 2013 is recorded in “accumulated other comprehensive loss” in the Company’s consolidated financial statements. The following table illustrates the changes recorded, net of tax, in accumulated other comprehensive loss resulting from the energy swap agreements. |
|
| | (in thousands) | | | | | | | | | | |
| | 2013 | | | 2012 | | | | | | | | | | |
Balance at January 1, | | $ | 28 | | | $ | (420 | ) | | | | | | | | | |
Amounts, net of tax, reclassified to unallocated inventory cost pool, | | | (127 | ) | | | 328 | | | | | | | | | | |
Net change associated with current period swap transactions, net of tax, | | | 278 | | | | 120 | | | | | | | | | | |
Balance at December 31, | | $ | 179 | | | $ | 28 | | | | | | | | | | |
|
The $0.2 million reported in accumulated other comprehensive loss as of December 31, 2013 will be reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place. The amount to be reclassified, net of taxes, during the next 12 months is expected to be $0.2 million. |
|
The aggregate fair value of derivative instruments in gross asset positions as of December 31, 2013 and December 31, 2012 was $0.3 million and $0.3 million, respectively. These amounts represent the maximum exposure to loss at the reporting date as a result of all of the counterparties failing to perform as contracted. This exposure could be reduced by up to $0 and $0.2 million, respectively, of liabilities included in master netting arrangements with those same counterparties. |
|
As of December 31, 2013 (in thousands) | | Gross | | | Gross | | | Net Amounts | | | | | | |
Amounts of | Amounts of | of Assets | | | | | |
Recognized | Assets | (Liabilities) | | | | | |
Assets | (Liabilities) | Presented in | | | | | |
(Liabilities) | Offset | the Balance Sheet | | | | | |
Energy swap derivatives – asset position | | $ | 275 | | | $ | - | | | $ | 275 | | | | | | |
|
As of December 31, 2012 (in thousands) | | Gross | | | Gross | | | Net Amounts | | | | | | |
Amounts of | Amounts of | of Assets | | | | | |
Recognized | Assets | (Liabilities) | | | | | |
Assets | (Liabilities) | Presented in | | | | | |
(Liabilities) | Offset | the Balance Sheet | | | | | |
Energy swap derivatives – asset position | | $ | 295 | | | $ | (161 | ) | | $ | 134 | | | | | | |
|
If, at any time, the swaps are determined to be ineffective, in whole or in part, due to changes in the Company’s energy usage or underlying hedge agreements or assumptions, the fair value of the portion of the energy swaps determined to be ineffective will be recognized as a gain or loss in cost of sales for the applicable period. For 2013 and 2012, the Company recognized a charge of $0.1 million and a reduction $0.1 million, respectively, to cost of sales resulting from transactions associated with the ineffectiveness of diesel energy swaps. See Note 21 – Fair Value Disclosures for additional information. |
|
Subsequent to December 31, 2013, Omega Protein entered into the following energy swap agreements: |
|
Energy Swap | Consumption Period | Quantity | | Price Per Unit | | | | | | | | | | |
Diesel - NYMEX Heating Oil Swap | May | - | November, 2014 | 333,366 Gallons | | $ | 2.95 | | | | | | | | | | |
Propane – NGL-Mont Belvieu Propane | June | - | November, 2014 | 683,000 Gallons | | $ | 1.09 | | | | | | | | | | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes |
|
The Company utilizes the asset and liability method to account for income taxes. This method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of existing temporary differences between the financial reporting and tax reporting basis of assets and liabilities, and operating loss and tax credits carryforwards for tax purposes. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. The Company believes that the deferred tax assets recorded as of December 31, 2013, net of the valuation allowance, are realizable through future reversals of existing taxable temporary differences and future taxable income. If the Company were to subsequently determine that it would be able to realize deferred tax assets in the future in excess of the net recorded amount, the adjustment would increase earnings for the period in which such determination was made. The Company will continue to assess the adequacy of the valuation allowance on a quarterly basis. Any changes to the estimated valuation allowance could be material to the consolidated financial condition and results of operations. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' |
Accounting for the Impairment of Long-Lived Assets |
|
The Company evaluates at each balance sheet date the continued appropriateness of the carrying value of its long-lived assets, including its long-term receivables and property, plant and equipment. The Company reviews long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of any such assets or grouping of assets may not be recoverable. The Company has grouped certain assets together (primarily marine vessels) for impairment testing on a fleet basis. If indicators of impairment are present, management evaluates the undiscounted cash flows estimated to be generated by those assets or grouping of assets compared to the carrying amount of those items. The net carrying value of assets or grouping of assets not recoverable is reduced to fair value. The Company considers continued operating losses, or significant and long-term changes in business conditions, to be its primary indicators of a potential impairment. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy | ' |
Plant Closure |
|
Property, plant and equipment impairments related to the Cameron, Louisiana plant are made in accordance with the impairment of long-lived assets policy. Employee severance related charges have been recognized to the extent that the amount is probable, measurable and no-future service is expected or for those still employed, recognized pro-rata over the remaining service period. Ongoing clean-up and dismantlement costs will be recognized as incurred unless obligated and measureable by a contractual commitment. See Note 5 – Plant Closure for additional information related to the charges incurred. |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Property, Equipment and Depreciation |
|
Property and equipment additions are recorded at cost. Depreciation of property and equipment is computed by the straight-line method at rates expected to amortize the cost of property and equipment, net of salvage value, over their estimated useful lives. Estimated useful lives, determined at the date of acquisition, of new assets acquired are based primarily on the review of existing property and equipment as well as other factors. Estimated useful lives are as follows: |
|
| Useful Lives | | | | | | | | | | | | | | |
(years) | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Stainless steel equipment | | 25 | | | | | | | | | | | | | | | |
Fishing vessels and fish processing plants | 15 | - | 20 | | | | | | | | | | | | | | |
Machinery, equipment, furniture and fixtures and other | 3 | - | 10 | | | | | | | | | | | | | | |
|
Replacements and major improvements are capitalized and amortized over a period of 5 to 15 years. Upon sale or retirement, the costs and related accumulated depreciation are eliminated from the accounts. Any resulting gains or losses are included in the statement of comprehensive income. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' |
Acquisitions, Goodwill and Other Intangible Assets |
|
Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to the fair value of tangible and intangible assets acquired less liabilities assumed. The determination of the fair value of the intangible assets acquired involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. |
|
The Company does not amortize goodwill or indefinite-lived intangible assets but performs tests for impairment annually, or when indications of potential impairment exist, utilizing a fair value approach at the reporting unit level. The Company determines fair value using widely accepted valuation techniques, including the income approach which estimates the fair value of its reporting units based on the future discounted cash flows, and the market approach which estimates the fair value of its reporting units based on comparable market prices. In testing for a potential impairment of goodwill, the Company estimates the fair value of its reporting units to which goodwill relates and compares it to the carrying value (book value) of the assets and liabilities related to those businesses. |
|
All of the Company’s goodwill and other intangible assets are the result of acquisitions in the human nutrition segment. This segment is comprised of two reporting units, 1) InCon and Cyvex and 2) WSP. |
|
The Company amortizes other intangible assets with determinable lives over their estimated useful lives. The Company records an impairment charge on these assets when it determines that their carrying value may not be recoverable. The carrying value is not recoverable if it exceeds the undiscounted future cash flows resulting from the use of the asset and its eventual disposition. When there is existence of one or more indicators of impairment, the Company measures any impairment of intangible assets based on a projected discounted cash flow method using a discount rate determined by the Company’s management to be commensurate with the risk inherent in its business model. The Company’s estimates of future cash flows attributable to its other intangible assets require significant judgment based on the Company’s historical and anticipated results and are subject to many factors. See Note 11 - Goodwill and Other Intangible Assets for more information about goodwill and other intangible assets. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | ' |
Pension Plans |
|
The Company records the overfunded or underfunded status of defined benefit pension and postretirement plans as an asset or liability in its statement of financial position and changes in that funded status in the year in which the changes occur through other comprehensive income. The Company also measures the funded status of a plan as of the date of its year-end statement of financial position. The Company’s policy is to fund its pension plan at amounts not less than the minimum requirements of the Employee Retirement Income Security Act of 1974. |
|
In 2002, the Board of Directors authorized a plan to freeze the Company’s pension plan in accordance with ERISA rules and regulations so that new employees, hired after July 31, 2002, are not eligible to participate in the pension plan and further benefits no longer accrue for existing participants. The freezing of the pension plan had the effect of vesting all existing participants in their pension benefits in the plan. See Note 16 – Benefit Plans for additional information related to the Company’s pension plans. |
Comprehensive Income, Policy [Policy Text Block] | ' |
Comprehensive Income (Loss) |
|
Comprehensive income (loss) is defined as change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments, interest and energy swap transactions, and pension benefits adjustments, including recognition of actuarial losses. The Company presents comprehensive income (loss) in its consolidated statements of comprehensive income and consolidated statements of stockholders’ equity. |
Stockholders' Equity, Policy [Policy Text Block] | ' |
Accumulated Comprehensive Loss |
|
The components of accumulated other comprehensive loss included in stockholders’ equity are as follows: |
|
Changes in Accumulated Other Comprehensive Loss by Component |
|
For the Year Ended December 31, 2013 (in thousands) |
|
| | Gains and Losses | | | Defined Benefit | | | | Total | | | | | | |
On Cash Flow | Pension Items | | | | | | |
Hedges | | | | | | | |
Beginning balance December 31, 2012 | | $ | 28 | | | $ | (9,952 | ) | | $ | (9,924 | ) | | | | | |
Other comprehensive income before reclassifications | | | 278 | | | | 2,560 | | | | 2,838 | | | | | | |
Amounts reclassified from accumulated other comprehensive loss | | | (127 | ) | (a) | | 1,005 | | (b) | | 878 | | | | | | |
Net current-period other comprehensive income | | | 151 | | | | 3,565 | | | | 3,716 | | | | | | |
Ending balance December 31, 2013 | | $ | 179 | | | $ | (6,387 | ) | | $ | (6,208 | ) | | | | | |
|
| (a) | This accumulated other comprehensive income component is reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place. | | | | | | | | | | | | | | | |
|
| (b) | This accumulated other comprehensive income component is included in the computation of net periodic pension costs as amortization of actuarial loss which are explained in more detail in Note 16. | | | | | | | | | | | | | | | |
|
Changes in Accumulated Other Comprehensive Loss by Component |
|
For the Year Ended December 31, 2012 (in thousands) |
|
| | Gains and Losses | | | Defined Benefit | | | | Total | | | | | | |
On Cash Flow | Pension Items | | | | | | |
Hedges | | | | | | | |
Beginning balance December 31, 2011 | | $ | (420 | ) | | $ | (10,259 | ) | | $ | (10,679 | ) | | | | | |
Other comprehensive income (loss) before reclassifications | | | 120 | | | | (679 | ) | | | (559 | ) | | | | | |
Amounts reclassified from accumulated other comprehensive loss | | | 328 | | (a) | | 986 | | (b) | | 1,314 | | | | | | |
Net current-period other comprehensive income | | | 448 | | | | 307 | | | | 755 | | | | | | |
Ending balance December 31, 2012 | | $ | 28 | | | $ | (9,952 | ) | | $ | (9,924 | ) | | | | | |
|
| (a) | This accumulated other comprehensive loss component is reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place. | | | | | | | | | | | | | | | |
| (b) | This accumulated other comprehensive income component is included in the computation of net periodic pension costs as amortization of actuarial loss which are explained in more detail in Note 16. | | | | | | | | | | | | | | | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
Concentrations of Credit Risk |
|
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. The Company’s customer base generally remains consistent from year to year. The Company performs ongoing credit evaluations of its customers and generally does not require material collateral. The Company maintains reserves for potential credit losses and such losses have historically been within management’s expectations. |
|
At December 31, 2013, the Company had cash deposits concentrated primarily in one major bank and two money market funds. The Company believes that credit risk in such investments is minimal. |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings per Share |
|
Basic earnings per share is calculated by dividing net income allocated to common shares outstanding by the weighted average number of shares of common stock outstanding. Diluted earnings per share assumes the exercise of stock options provided the effect is not anti-dilutive. |
|
The Company grants certain incentive compensation awards, including restricted stock, to employees and non-employee directors that are considered to be participating securities. Due to the presence of participating securities, we have calculated our earnings per share using the two-class method. See Note 13 – Reconciliation of Basic and Diluted per Share Data. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Stock-Based Compensation |
|
The Company has a stock-based compensation plan, which is described in more detail in Note 16. |
|
Shares Issued to Directors |
|
In 2013 and 2012, approximately 3,200 and 7,600 shares of the Company’s stock were issued to directors in non-cash transactions as payment in lieu of Board retainer and per diem fees. Expenses were recognized on these non-cash transactions of approximately $25,200 and $56,100. In 2011, no shares of the Company’s common stock were issued to directors in non-cash transactions as payment in lieu of Board retainer and per diem fees. |
|
Shareholder Rights Plan |
|
In June 2010, the Company’s Board of Directors adopted a Shareholder Rights Plan. The Plan is designed to protect the Company from unfair or coercive takeover tactics and to prevent an acquirer from gaining control of the Company without offering a fair price to all shareholders. See Note 22 – Shareholders Rights Plan for additional information. |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recently Issued Accounting Standards |
|
In July 2013, the FASB issued ASU No. 2013-11 which amended the Income Taxes Topic of the Accounting Standards Codification to eliminate a diversity in practice for the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses or tax credit carryforwards exist. The amendment requires that the unrecognized tax benefit be presented as a reduction of the deferred tax assets associated with the carryforwards except in certain circumstances when it would be reflected as a liability. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2013. The Company is currently evaluating the impact the adoption of this guidance will have on its consolidated financial statements. |
|
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires companies to present, either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. The standard is effective prospectively for public entities for fiscal years, and interim periods within those years, beginning after December 12, 2012, which corresponds to the Company’s first fiscal quarter beginning January 1, 2013. The Company’s adoption of FASB ASU No. 2013-02, effective January 1, 2013, did not have an impact on the Company’s consolidated results of operations or financial position. |
|
In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The standard limits the scope of balance sheet offsetting disclosures, contained in the new guidance issue in December 2011 discussed below, to recognized derivative instruments, repurchase agreements and securities borrowing and lending transactions. Effective for annual and interim periods beginning on or after January 1, 2013, the Company’s adoption of FASB ASU No. 2013-01 effective January 1, 2013 did not have an impact on the Company’s consolidated results of operations, financial position and related disclosures. |
|
In July 2012, the FASB issued ASU No. 2012-02 regarding subsequent measurement guidance for long-lived intangibles. This guidance is meant to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. This guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, which corresponds to the Company’s first fiscal quarter beginning January 1, 2013. The Company’s adoption of FASB ASU No. 2012-02 effective January 1, 2013 did not have an impact on the Company’s consolidated results of operations, financial position and related disclosures. |
|
In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The standard requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The amendments in this update will enhance disclosures required by U.S. GAAP by requiring improved information about financial instruments and derivative instruments to help reconcile differences in the offsetting requirements under U.S. GAAP and International Financial Reporting Standards (IFRS). The amendments are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company’s adoption of FASB ASU No. 2011-11 effective January 1, 2013 did not have an impact on the Company’s consolidated results of operations or financial position. |