Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2014 |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidation |
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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 |
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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. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition |
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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 acquisitions of Cyvex, InCon, WSP and Bioriginal the Company’s revenues include sales of dietary supplement and food ingredients and products. The Company recognizes revenue for the sale of its products when price is established, collectability is reasonably assured and risk and rewards of ownership of its products and title are transferred to the customer. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling |
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Amounts billed to customers associated with shipping and handling are included in revenues and the related costs are included in cost of sales. For 2014, 2013 and 2012, $10.3 million, $9.4 million and $14.4 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 |
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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 |
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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 |
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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. |
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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. |
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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. |
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Any costs incurred during abnormal downtime related to activity at Omega Protein’s plants are charged to expense as incurred. |
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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 |
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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 |
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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. |
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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. |
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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. |
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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 |
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The costs of advertising are expensed as incurred. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development |
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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 |
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The Company does not enter into financial instruments for trading or speculative purposes. During 2014, 2013 and 2012, 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. |
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Energy Swap | | Consumption Period | | Quantity | | Price Per Unit | | | Energy Swap Asset/(Liability) as of | | | Deferred Tax Asset/(Liability) as of | |
31-Dec-14 | 31-Dec-14 |
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Diesel - NYMEX Heating Oil Swap | | May - November, 2015 | | 2,333,848 Gallons | | $ | 2.75 | | | $ | (2,097 | ) | | $ | 734 | |
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Natural Gas - NYMEX Natural Gas Swap | | April – October, 2015 | | 114,000 MMBTUs | | $ | 4.09 | | | | (125 | ) | | | 44 | |
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Propane – Natural Gas Liquids Swap | | June - November, 2015 | | 1,024,800 Gallons | | $ | 0.86 | | | | (346 | ) | | | 121 | |
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Diesel - NYMEX Heating Oil Swap | | May - November, 2016 | | 1,333,464 Gallons | | $ | 2.5 | | | | (679 | ) | | | 238 | |
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Propane – Natural Gas Liquids Swap | | June - November, 2016 | | 341,600 Gallons | | $ | 0.67 | | | | (41 | ) | | | 14 | |
| | | | | | | | | | $ | (3,288 | ) | | $ | 1,151 | |
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Energy Swap | | Consumption Period | | Quantity | | Price Per Unit | | | Energy Swap Asset/(Liability) as of | | | Deferred Tax Asset/(Liability) as of | |
31-Dec-13 | 31-Dec-13 |
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Diesel - NYMEX Heating Oil Swap | | Oct. – Nov., 2013 | | 998,700 Gallons | | $ | 2.88 | | | $ | 132 | | | $ | (46 | ) |
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Natural Gas - NYMEX Natural Gas Swap | | Apr. – Oct., 2014 | | 307,374 MMBTUs | | $ | 3.67 | | | | 143 | | | | (50 | ) |
| | | | | | | | | | $ | 275 | | | $ | (96 | ) |
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As of December 31, 2014, Omega Protein has recorded a long-term liability of $0.7 million net of the current portion included in other current liabilities of $2.6 million to recognize the fair value of energy swap derivatives, and has also recorded a deferred tax asset of $1.2 million associated therewith. As of December 31, 2013, Omega Protein has recorded a current asset in prepaid expenses of $0.3 to recognize the fair value of energy swap derivatives, and has also recorded a deferred tax liability of $0.1 million associated therewith. The effective portion of the change in fair value from inception to December 31, 2014 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. |
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| | (in thousands) | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | |
Balance at January 1, | | $ | 179 | | | $ | 28 | | | | | | | | | |
Net loss (gain), net of tax, reclassified to unallocated inventory cost pool | | | 34 | | | | (127 | ) | | | | | | | | |
Net change associated with current period swap transactions, net of tax, | | | (2,350 | ) | | | 278 | | | | | | | | | |
Balance at December 31, | | $ | (2,137 | ) | | $ | 179 | | | | | | | | | |
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The $2.1 million and $0.2 million reported in accumulated other comprehensive loss as of December 31, 2014 and 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 $1.7 million. |
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The aggregate fair value of derivative instruments in gross (liability) asset positions as of December 31, 2014 and 2013 was ($3.3) 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. |
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As of December 31, 2014 (in thousands) | | Gross Amounts of Recognized Assets (Liabilities) | | | Gross Amounts of Assets (Liabilities)Offset | | | Net Amounts of Assets (Liabilities) Presented in the Balance Sheet | | | | | |
Energy swap derivatives – liability position | | $ | (3,288 | ) | | $ | — | | | $ | (3,288 | ) | | | | |
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As of December 31, 2013 (in thousands) | | Gross Amounts of Recognized Assets (Liabilities) | | | Gross Amounts of Assets (Liabilities)Offset | | | Net Amounts of Assets (Liabilities) Presented in the Balance Sheet | | | | | |
Energy swap derivatives – asset position | | $ | 275 | | | $ | — | | | $ | 275 | | | | | |
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If, at any time, the swaps are determined to be ineffective 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, the Company included an expense of $0.1 million in cost of sales resulting from transactions associated with the ineffectiveness of diesel energy swaps. See Note 18 – Fair Value Disclosures for additional information. |
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Subsequent to December 31, 2014, Omega Protein entered into the following energy swap agreements: |
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Energy Swap | | Consumption Period | | Quantity | | Price Per Unit | | | | | | | | | |
Diesel - NYMEX Heating Oil Swap | | May – November, 2015 | | 352,025 Gallons | | $ | 1.87 | | | | | | | | | |
Natural Gas - NYMEX Natural Gas Swap | | April – October, 2015 | | 73,575 MMBTUs | | $ | 3.04 | | | | | | | | | |
Diesel - NYMEX Heating Oil Swap | | May – November, 2016 | | 717,215 Gallons | | $ | 1.93 | | | | | | | | | |
Natural Gas - NYMEX Natural Gas Swap | | April – October, 2016 | | 125,000 MMBTUs | | $ | 3.35 | | | | | | | | | |
Propane – NGL-Mont Belvieu Propane | | June – November, 2016 | | 308,400 Gallons | | $ | 0.53 | | | | | | | | | |
Income Tax, Policy [Policy Text Block] | Income Taxes |
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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, 2014, 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 |
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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 [Policy Text Block] | Plant Closure |
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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 4 – Plant Closure for additional information related to the charges incurred. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Equipment and Depreciation |
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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: |
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| | Useful Lives | | | | | | | | | | | | | |
| | (years) | | | | | | | | | | | | | |
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Stainless steel equipment | | | 25 | | | | | | | | | | | | | |
Fishing vessels and fish processing plants | | | 15-20 | | | | | | | | | | | | | |
Machinery, equipment, furniture and fixtures and other | | | 10-Mar | | | | | | | | | | | | | |
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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 |
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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. |
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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. |
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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 three reporting units, 1) InCon and Cyvex, 2) WSP and 3) Bioriginal. |
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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 10 - 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 |
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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. |
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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 15 – Benefit Plans for additional information related to the Company’s pension plans. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) |
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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 |
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The components of accumulated other comprehensive loss included in stockholders’ equity are as follows: |
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Changes in Accumulated Other Comprehensive Loss by Component |
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For the Year Ended December 31, 2014 (in thousands) |
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| | Gains and Losses | | | Defined Benefit | | | Foreign currency | | | Total | |
On Cash Flow | Pension Items | Translation |
Hedges | | adjustment |
Beginning balance December 31, 2013 | | $ | 179 | | | $ | (6,387 | ) | | $ | — | | | $ | (6,208 | ) |
Other comprehensive loss before reclassifications | | | (2,350 | ) | | | (2,010 | ) | | | (915 | ) | | | (5,275 | ) |
Amounts reclassified from accumulated other comprehensive loss | | | 34 | (a) | | | 593 | (b) | | | — | | | | 627 | |
Net current-period other comprehensive income | | | (2,316 | ) | | | (1,417 | ) | | | (915 | ) | | | (4,648 | ) |
Ending balance December 31, 2014 | | $ | (2,137 | ) | | $ | (7,804 | ) | | $ | (915 | ) | | $ | (10,856 | ) |
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| (a) | This accumulated other comprehensive income component is reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place. | | | | | | | | | | | | | | |
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| (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 15. | | | | | | | | | | | | | | |
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| | 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 | | | | 2,550 | | | | 2,828 | | | | | |
Amounts reclassified from accumulated other comprehensive loss | | | (127 | )(c) | | | 1,015 | (d) | | | 888 | | | | | |
Net current-period other comprehensive income | | | 151 | | | | 3,565 | | | | 3,716 | | | | | |
Ending balance December 31, 2013 | | $ | 179 | | | $ | (6,387 | ) | | $ | (6,208 | ) | | | | |
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| (c) | This accumulated other comprehensive income component is reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place. | | | | | | | | | | | | | | |
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| (d) | 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 15. | | | | | | | | | | | | | | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk |
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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. |
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At December 31, 2014, the Company had cash deposits concentrated primarily in one major bank. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share |
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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. |
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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 12 – Reconciliation of Basic and Diluted per Share Data. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation |
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The Company has a stock-based compensation plan, which is described in more detail in Note 15. |
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Shares Issued to Directors |
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In 2014, 2013 and 2012, approximately 0, 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 $0, $25,200 and $56,100. |
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Shareholder Rights Plan |
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On April 1, 2014, the Company’s Board of Directors terminated the Company’s Shareholder Rights Plan (“SRP”). The SRP was adopted in June 2010, shortly after the BP oil spill in the U.S. Gulf of Mexico, and was originally scheduled to terminate in June 2020. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translations |
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All amounts are expressed in U.S. dollars unless otherwise indicated. The U.S. dollar is the functional currency of Bioriginal’s Canadian-based subsidiaries (“Bioriginal Canada”). Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Non-monetary items are translated at rates of exchange in effect when the assets were acquired or obligations incurred. Revenue and expenses are translated at average rates in effect in the period of the transaction. Foreign exchange gains and losses are included in the condensed consolidated statement of comprehensive income. |
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The Euro is the functional currency of Bioriginal’s Netherlands-based subsidiaries (“Bioriginal Europe”). The operations of these subsidiaries are considered self-sustaining and their financial statements are translated into U.S. dollars using the current rate method. Under this method, all assets and liabilities are translated to U.S. dollars at exchange rates in effect at the balance sheet date and all revenue and expenses are translated at rates in effect at the time of the transactions. Exchange gains and losses arising from this translation, representing the net unrealized foreign currency translation gain (loss) on the Company's net investment in its self-sustaining subsidiaries, are recorded in the accumulated other comprehensive income (loss) component of shareholders' equity. Adjustments to the accumulated other comprehensive income (loss) account are not recorded in the condensed consolidated statement of comprehensive income until realized through a reduction in the Company's net investment in such operations. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards |
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In November 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update (“ASU”) 2014-17, Business Combinations: Pushdown Accounting. This ASU amended the Business Combination Accounting Standards Codification to provide guidance on whether and at what threshold an acquired entity that is a business or nonprofit activity can apply pushdown accounting in its separate financial statements. The Company’s adoption of FASB ASU No. 2013-17 effective November 14, 2014 did not have an impact on the Company’s consolidated results of operations, financial position and related disclosures. |
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In November 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-16, Derivatives and Hedging: Determining whether the Host Contract in a Hybrid Financial Statement Issued in the Form of a Share is More Akin to Debt or Equity. This ASU amended the Derivatives and Hedging Accounting Standards Codification to eliminate the use of different methods in practice and thereby reduce existing diversity under GAAP in the accounting for hybrid financial instruments used in the form of a share. The new standard is effective in annual periods beginning on or after December 15, 2015 with early adoption permitted. The Company’s adoption of FASB ASU No. 2014-16 is not expected to have an impact on the Company’s consolidated results of operations, financial position and related disclosures. |
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In August 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements- Going Concern (Subtopic 205-40). The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in the U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The guidance is effective for annual periods ending after December 15, 2016 and for annual periods thereafter. Early adoption is permitted. The Company does not expect this ASU to have a material impact on the Company’s consolidated results of operations, financial position and related disclosures. |
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In June 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-12, Compensation — Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. A performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation — Stock Compensation. As a result, the target is not reflected in the estimation of the award's grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Early adoption is permitted. The Company does not expect this ASU to have a material impact on the Company’s consolidated results of operations, financial position and related disclosures. |
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In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The Company is required to adopt this ASU on January 1, 2017. The Company is currently evaluating the potential impact of these changes on the consolidated results of operations, financial position and related disclosures. |
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In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The new standard is effective in annual periods beginning on or after December 15, 2014 with early adoption permitted. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The Company’s adoption of FASB ASU No. 2014-08 is not expected to have an impact on the Company’s consolidated results of operations, financial position and related disclosures. |
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In July 2013, the FASB issued ASU No. 2013-11, Income Taxes: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU 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’s adoption of FASB ASU No. 2013-11 effective January 1, 2014 did not have an impact on the Company’s consolidated results of operations, financial position and related disclosures. |