Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Aug. 23, 2017 | Dec. 31, 2016 | |
Entity Registrant Name | PHIBRO ANIMAL HEALTH CORP | ||
Entity Central Index Key | 1,069,899 | ||
Trading Symbol | pahc | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 540,780,431 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Class A common stock | |||
Entity Common Stock, Shares Outstanding | 19,261,789 | ||
Class B common stock | |||
Entity Common Stock, Shares Outstanding | 20,626,836 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 764,281 | $ 751,526 | $ 748,591 |
Cost of goods sold | 516,038 | 512,494 | 515,311 |
Gross profit | 248,243 | 239,032 | 233,280 |
Selling, general and administrative expenses | 150,309 | 153,288 | 145,612 |
Operating income | 97,934 | 85,744 | 87,668 |
Interest expense, net | 14,906 | 16,592 | 14,305 |
Foreign currency (gains) losses, net | (113) | (7,609) | (5,400) |
Loss on extinguishment of debt | 2,598 | ||
Income before income taxes | 80,543 | 76,761 | 78,763 |
Provision (benefit) for income taxes | 15,928 | (5,967) | 18,483 |
Net income | $ 64,615 | $ 82,728 | $ 60,280 |
Net income per share | |||
basic (in dollars per share) | $ 1.63 | $ 2.11 | $ 1.55 |
diluted (in dollars per share) | $ 1.61 | $ 2.07 | $ 1.51 |
Weighted average common shares outstanding | |||
basic (in shares) | 39,524 | 39,254 | 38,969 |
diluted (in shares) | 40,042 | 39,962 | 39,815 |
Dividends per share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 64,615 | $ 82,728 | $ 60,280 |
Change in fair value of derivative instruments | 31 | 4,197 | (1,928) |
Foreign currency translation adjustment | (1,652) | (9,181) | (31,314) |
Unrecognized net pension gains (losses) | 12,918 | (11,093) | (3,221) |
(Provision) benefit for income taxes | (4,949) | 5,892 | 4,923 |
Other comprehensive income (loss) | 6,348 | (10,185) | (31,540) |
Comprehensive income | $ 70,963 | $ 72,543 | $ 28,740 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 56,083 | $ 33,605 |
Accounts receivable, net | 125,847 | 123,790 |
Inventories, net | 161,233 | 167,691 |
Other current assets | 20,502 | 17,745 |
Total current assets | 363,665 | 342,831 |
Property, plant and equipment, net | 127,351 | 127,323 |
Intangibles, net | 54,602 | 60,095 |
Goodwill | 23,982 | 21,121 |
Other assets | 53,797 | 56,465 |
Total assets | 623,397 | 607,835 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current portion of long-term debt | 6,250 | 2,907 |
Accounts payable | 56,894 | 60,167 |
Accrued expenses and other current liabilities | 52,652 | 45,703 |
Total current liabilities | 115,796 | 108,777 |
Revolving credit facility | 65,000 | 69,000 |
Long-term debt | 241,891 | 278,265 |
Other liabilities | 49,553 | 61,313 |
Total liabilities | 472,240 | 517,355 |
Commitments and contingencies (Note 12) | ||
Common stock, par value $0.0001 per share; 300,000,000 Class A shares authorized, 19,249,132 and 18,519,757 shares issued and outstanding at June 30, 2017, and June 30, 2016, respectively; 30,000,000 Class B shares authorized, 20,626,836 and 20,887,811 shares issued and outstanding at June 30, 2017, and June 30, 2016, respectively | 4 | 4 |
Preferred stock, par value $0.0001 per share; 16,000,000 shares authorized, no shares issued and outstanding | ||
Paid-in capital | 123,840 | 118,299 |
Retained earnings | 82,750 | 33,962 |
Accumulated other comprehensive income (loss) | (55,437) | (61,785) |
Total stockholders' equity | 151,157 | 90,480 |
Total liabilities and stockholders' equity | $ 623,397 | $ 607,835 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2017 | Jun. 30, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 16,000,000 | 16,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 19,249,132 | 18,519,757 |
Common stock, shares outstanding | 19,249,132 | 18,519,757 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 20,626,836 | 20,887,811 |
Common stock, shares outstanding | 20,626,836 | 20,887,811 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
OPERATING ACTIVITIES | |||
Net income | $ 64,615 | $ 82,728 | $ 60,280 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 26,001 | 23,452 | 21,604 |
Amortization of debt issuance costs and debt discount | 1,015 | 989 | 967 |
Acquisition-related cost of goods sold | 2,566 | ||
Acquisition-related accrued compensation | 1,680 | 1,680 | 747 |
Acquisition-related accrued interest | 1,373 | 1,476 | 613 |
Acquisition-related other, net | (972) | ||
Pension settlement cost | 1,702 | ||
Deferred income taxes | (28) | (22,244) | 4,761 |
Foreign currency (gains) losses, net | (867) | (7,725) | (3,376) |
Other | 765 | 354 | 61 |
Loss on extinguishment of debt | 2,598 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (2,765) | (13,086) | (1,877) |
Inventories, net | 5,432 | (16,439) | (19,354) |
Other current assets | (3,012) | 457 | 7,416 |
Other assets | (1,504) | (6,547) | (4,236) |
Accounts payable | (3,119) | (3,245) | 4,796 |
Accrued expenses and other liabilities | 5,471 | (7,198) | (3,698) |
Net cash provided (used) by operating activities | 98,385 | 37,218 | 68,704 |
INVESTING ACTIVITIES | |||
Capital expenditures | (20,880) | (36,352) | (20,058) |
Business acquisition | (46,576) | (10,377) | |
Other, net | (1,062) | 137 | (4,029) |
Net cash provided (used) by investing activities | (21,942) | (82,791) | (34,464) |
FINANCING ACTIVITIES | |||
Revolving credit facility borrowings | 230,500 | 255,500 | 38,000 |
Revolving credit facility repayments | (234,500) | (189,500) | (35,000) |
Proceeds from long-term debt | 250,000 | ||
Payments of long-term debt, capital leases and other | (285,527) | (3,929) | (4,090) |
Debt issuance costs | (3,925) | ||
Proceeds from common shares issued | 5,541 | 4,017 | 1,334 |
Dividends paid | (15,827) | (15,708) | (15,595) |
Net cash provided (used) by financing activities | (53,738) | 50,380 | (15,351) |
Effect of exchange rate changes on cash | (227) | (418) | (1,494) |
Net increase (decrease) in cash and cash equivalents | 22,478 | 4,389 | 17,395 |
Cash and cash equivalents at beginning of period | 33,605 | 29,216 | 11,821 |
Cash and cash equivalents at end of period | 56,083 | 33,605 | 29,216 |
Supplemental cash flow information | |||
Interest paid | 14,600 | 14,215 | 12,912 |
Income taxes paid, net | 14,762 | 16,828 | 10,780 |
Non-cash investing and financing activities | |||
Business acquisition | 4,156 | ||
Property, plant and equipment and capital lease additions | $ 1,550 | $ 1,438 | $ 1,193 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Common Stock | Preferred Stock | Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Jun. 30, 2014 | $ 4 | $ 132,453 | $ (97,248) | $ (20,060) | $ 15,149 | |
Balance (in shares) at Jun. 30, 2014 | 38,791,553 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 60,280 | (31,540) | 28,740 | |||
Exercise of stock options and warrant | 1,334 | 1,334 | ||||
Exercise of stock options and warrant (in shares) | 276,515 | |||||
Dividends paid | (15,595) | (15,595) | ||||
Balance at Jun. 30, 2015 | $ 4 | 118,192 | (36,968) | (51,600) | 29,628 | |
Balance (in shares) at Jun. 30, 2015 | 39,068,068 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 82,728 | (10,185) | 72,543 | |||
Exercise of stock options and warrant | 4,017 | 4,017 | ||||
Exercise of stock options and warrant (in shares) | 339,500 | |||||
Dividends paid | (3,910) | (11,798) | (15,708) | |||
Balance at Jun. 30, 2016 | $ 4 | 118,299 | 33,962 | (61,785) | 90,480 | |
Balance (in shares) at Jun. 30, 2016 | 39,407,568 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 64,615 | 6,348 | 70,963 | |||
Exercise of stock options and warrant | 5,541 | 5,541 | ||||
Exercise of stock options and warrant (in shares) | 468,400 | |||||
Dividends paid | (15,827) | (15,827) | ||||
Balance at Jun. 30, 2017 | $ 4 | $ 123,840 | $ 82,750 | $ (55,437) | $ 151,157 | |
Balance (in shares) at Jun. 30, 2017 | 39,875,968 |
Description of Business
Description of Business | 12 Months Ended |
Jun. 30, 2017 | |
Description Of Business [Abstract] | |
Description of Business | 1. Description of Business Phibro Animal Health Corporation (“Phibro” or “PAHC”) and its subsidiaries (together, the “Company”) is a diversified global developer, manufacturer and marketer of a broad range of animal health and mineral nutrition products for food animals including poultry, swine, cattle, dairy and aquaculture. The Company is also a manufacturer and marketer of performance products for use in the personal care, automotive, industrial chemical and chemical catalyst industries. Unless otherwise indicated or the context requires otherwise, references in this report to “we,” “our,” “us,” and similar expressions refer to Phibro and its subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and New Accounting Standards | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and New Accounting Standards | 2. Summary of Significant Accounting Policies and New Accounting Standards Principles of Consolidation and Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of Phibro and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated from the consolidated financial statements. The decision whether or not to consolidate an entity requires consideration of majority voting interests, as well as effective control over the entity. We present our financial statements on the basis of our fiscal year ending June 30. All references to years in these consolidated financial statements refer to the fiscal year ending or ended on June 30 of that year. Risks, Uncertainties and Liquidity The issue of the potential for increased bacterial resistance to certain antibiotics used in certain food-producing animals is the subject of discussions on a worldwide basis and, in certain instances, has led to government restrictions on or banning of the use of antibiotics in food-producing animals. The sale of antibiotics and antibacterials is a material portion of our business. Should product bans or restrictions, public perception, competition or other developments result in restrictions on the sale of such products, it could have a material adverse effect on our financial position, results of operations and cash flows. The testing, manufacturing, and marketing of certain of our products are subject to extensive regulation by numerous government authorities in the United States and other countries. We have significant assets in Israel, Brazil and other locations outside of the United States and a significant portion of our sales and earnings are attributable to operations conducted abroad. Our assets, results of operations and future prospects are subject to currency exchange fluctuations and restrictions, energy shortages, other economic developments, political or social instability in some countries, and uncertainty of, and governmental control over, commercial rights, which could result in a material adverse effect on our financial position, results of operations and cash flows. We are subject to environmental laws and regulations governing the use, storage, handling, generation, treatment, emission, release, discharge and disposal of certain materials and wastes, the remediation of contaminated soil and groundwater, the manufacture, sale and use of regulated materials, including pesticides, and the health and safety of employees. As such, the nature of our current and former operations and those of our subsidiaries expose Phibro and our subsidiaries to the risk of claims with respect to such matters. Use of Estimates Preparation of the consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. Actual results could differ from these estimates. Significant estimates include valuation of intangible assets, depreciation and amortization periods of long-lived and intangible assets, recoverability of long-lived and intangible assets and goodwill, realizability of deferred income tax and value-added tax assets, legal and environmental matters and actuarial assumptions related to our pension plans. We regularly evaluate our estimates and assumptions using historical experience and other factors. Our estimates are based on complex judgments, probabilities and assumptions that we believe to be reasonable. Revenue Recognition We recognize revenue for sales of our goods upon transfer of title and when risk of loss passes to the customer. Certain of our businesses have terms where title and risk of loss transfer on shipment. Certain of our businesses have terms where title and risk of loss transfer on delivery. Recognition of revenue also requires that persuasive evidence of an arrangement exists, the selling price is fixed or determinable, the collection of sales proceeds is reasonably assured and that we have no further performance obligations. We record reductions to revenue for the estimated costs of customer programs and incentive offerings, including pricing arrangements and other volume-based incentives, at the time the sale is recorded. Net sales include royalty and licensing income from licensing agreements when all performance obligations have been met. Net sales include shipping and handling fees billed to customers. Delivery costs to our customers are included in cost of goods sold in the consolidated statements of operations. Net sales exclude value-added and other taxes based on sales. Cash and Cash Equivalents Cash equivalents include highly liquid investments with maturities of three months or less when purchased. Cash and cash equivalents held at financial institutions may at times exceed federally insured amounts. We believe we mitigate such risk by investing in or through major financial institutions. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. We grant credit terms in the normal course of business and generally do not require collateral or other security to support credit sales. Our ten largest customers represented, in aggregate, approximately 21% and 27% of accounts receivable at June 30, 2017 and 2016, respectively. The allowance for doubtful accounts is our best estimate of the probable credit losses in existing accounts receivable. We monitor the financial performance and creditworthiness of our customers so that we can properly assess and respond to changes in their credit profile. We also monitor domestic and international economic conditions for the potential effect on our customers. Past due balances are reviewed individually for collectability. Account balances are charged against the allowance when we determine it is probable the receivable will not be recovered. Inventories Inventories are valued at the lower of cost or market. Cost is determined principally under weighted average and standard cost methods, which approximate first-in, first-out (FIFO) cost. Obsolete and unsalable inventories, if any, are reflected at estimated net realizable value. Inventory costs include materials, direct labor and manufacturing overhead. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is charged to results of operations using the straight-line method based upon the assets’ estimated useful lives ranging from two to 30 years for buildings and improvements, and one to 10 years for machinery and equipment. Capitalized Software Costs We capitalize costs to obtain, develop and implement software for internal use. Amounts paid to third parties and costs of internal employees who are directly associated with the software project are also capitalized, depending on the stage of development. We expense software costs that do not meet the capitalization criteria. Capitalized software costs are included in property, plant and equipment on the consolidated balance sheets and are amortized on a straight-line basis over 3 to 7 years. Deferred Financing Costs Costs and original issue discounts or premiums related to issuance or modification of our debt are deferred on the consolidated balance sheet and amortized over the lives of the respective debt instruments. Amortization of deferred financing costs is included in interest expense in the consolidated statements of operations. During the three months ended September 30, 2016, we adopted the provisions of FASB Accounting Standards Update (“ASU”) 2015-03, Interest—Imputation of Interest (Subtopic 835-30) Acquisitions, Intangible Assets and Goodwill Our consolidated financial statements reflect the operations of an acquired business beginning as of the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values at the date of acquisition; goodwill is recorded for any excess of the purchase price over the fair values of the net assets acquired. Significant judgment is required to determine the fair value of certain tangible and intangible assets and in assigning their respective useful lives. Accordingly, we typically obtain the assistance of third-party valuation specialists for significant tangible and intangible assets. The fair values are based on available historical information and on future expectations and assumptions deemed reasonable by management, but are inherently uncertain. We typically use an income method to measure the fair value of intangible assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants, and include the amount and timing of future cash flows (including expected growth rates and profitability), the underlying product or technology life cycles, economic barriers to entry and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances could affect the accuracy or validity of the estimates and assumptions. Determining the useful life of an intangible asset also requires judgment. Our estimates of the useful lives of intangible assets are based on factors including competitive environment, underlying product life cycles, operating plans and the macroeconomic environment of the countries in which the products are sold. Intangible assets are amortized over their estimated lives. Intangible assets associated with acquired in-process research and development activities (“IPR&D”) are not amortized until a product is available for sale. Long-Lived Assets and Goodwill We periodically review our long-lived and amortizable intangible assets for impairment and assess whether significant events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. Such circumstances may include a significant decrease in the market price of an asset, a significant adverse change in the manner in which the asset is being used or in its physical condition or a history of operating or cash flow losses associated with the use of an asset. We recognize an impairment loss when the carrying amount of an asset exceeds the anticipated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss is the excess of the asset’s carrying value over its fair value. In addition, we periodically reassess the estimated remaining useful lives of our long-lived and amortizable intangible assets. Changes to estimated useful lives would affect the amount of depreciation and amortization recorded in the consolidated statements of operations. During the three months ended June 30, 2017, we determined that certain intangible assets related to technology within the Animal Health segment were impaired, based on changes to future product sales assumptions, and recorded an impairment charge of $713 as a component of selling, general and administrative expenses in our consolidated statements of operations. There were no significant asset impairments or changes in estimated remaining useful lives of our long-lived or amortizable intangible assets in the periods included in the consolidated financial statements prior to 2017. We periodically review our indefinite-lived intangible assets associated with acquired IPR&D for impairment and assess whether significant events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. We recognize an impairment loss when the carrying amount of an asset exceeds the anticipated future discounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss is the excess of the asset’s carrying value over its fair value. During the fourth quarter of each year, or more frequently if impairment indicators exist, we perform an annual impairment assessment. During the three months ended June 30, 2017, we determined that certain IPR&D within the Animal Health segment was impaired, based on changes to future product sales assumptions, and recorded an impairment charge of $1,579 as a component of selling, general and administrative expenses in our consolidated statements of operations. We did not record any impairment charges related to indefinite-lived intangible assets in 2016 and 2015. Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination. We assess goodwill for impairment annually during our fourth quarter, or more frequently if impairment indicators exist. Impairment exists when the carrying amount of goodwill exceeds its implied fair value. We may elect to assess our goodwill for impairment using a qualitative or a quantitative approach, to determine whether it is more likely than not that the fair value of goodwill is greater than its carrying value. During the three months ended June 30, 2017, we tested goodwill using a quantitative approach, which involved estimating fair values of reporting units using the discounted cash flow method. We determined goodwill was not impaired. We have not recorded any goodwill impairment charges in the periods included in the consolidated financial statements. Foreign Currency Translation We generally use local currency as the functional currency to measure the financial position and results of operations of each of our international subsidiaries. We translate assets and liabilities of these operations at the exchange rates in effect at the balance sheet date. We translate income statement accounts at the average rates of exchange prevailing during the period. Translation adjustments that arise from the use of differing exchange rates from period to period are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Certain of our Israeli operations have designated the U.S. dollar as their functional currency. Gains and losses arising from remeasurement of local currency accounts into U.S. dollars are included in determining net income. Comprehensive Income Comprehensive income consists of net income and the changes in: (i) the fair value of derivative instruments that qualify for hedge accounting; (ii) foreign currency translation adjustments; (iii) unrecognized net pension gains (losses); and (iv) the related (provision) benefit for income taxes. Derivative Financial Instruments We record all derivative financial instruments on the consolidated balance sheets at fair value. Changes in the fair value of derivatives are recorded in results of operations or accumulated other comprehensive income (loss), depending on whether a derivative is designated and effective as part of a hedge transaction and, if so, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income (loss) are included in the results of operations in the periods in which operations are affected by the underlying hedged item. From time to time, we use certain derivative instruments to mitigate the risk associated with certain economic factors, such as exchange rates and interest rates, which may potentially affect our future cash flows. As of June 30, 2017, we used foreign currency option contracts to mitigate certain exposures related to changes in foreign currency exchange rates, and as a means of hedging forecasted inventory purchases. In July 2017, we entered into an interest rate swap agreement on $150 million of notional principal. To qualify a derivative as a hedge, we document the nature and relationships between hedging instruments and hedged items, the prospective effectiveness of the hedging instrument as well as the ultimate effectiveness, the risk-management objectives, the strategies for undertaking the various hedge transactions and the methods of assessing hedge effectiveness. We do not engage in trading or other speculative uses of financial instruments. Environmental Liabilities Expenditures for ongoing compliance with environmental regulations are expensed or capitalized as appropriate. We capitalize expenditures made to extend the useful life or productive capacity of an asset, including expenditures that prevent future environmental contamination. Other expenditures are expensed as incurred and are recorded in selling, general and administrative expenses in the consolidated statements of operations. We record the expense and related liability in the period an environmental assessment indicates remedial efforts are probable and the costs can be reasonably estimated. Estimates of the liability are based upon currently available facts, existing technology and presently enacted laws and regulations taking into consideration the likely effects of inflation and other societal and economic factors. All available evidence is considered, including prior experience in remediation of contaminated sites, other companies’ experiences and data released by the U.S. Environmental Protection Agency and other organizations. The estimated liabilities are not discounted. We record anticipated recoveries under existing insurance contracts if probable. Income Taxes The provision for income taxes includes U.S. federal, state, and foreign income taxes and foreign withholding taxes. Our annual effective income tax rate is determined based on our income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate and the tax effects of items treated differently for tax purposes than for financial reporting purposes. Tax law requires certain items be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible in our tax return, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences give rise to deferred tax assets and liabilities. Deferred tax assets generally represent the tax effect of items that can be used as a tax deduction or credit in future years for which we have already recorded the tax benefit in our income statement. Deferred tax liabilities generally represent the tax effect of items recorded as tax expense in our income statement for which payment has been deferred, the tax effect of expenditures for which a deduction has already been taken in our tax return but has not yet been recognized in our income statement, and the tax effect of assets recorded at fair value in business combinations for which there was no corresponding tax basis adjustment. Significant judgment is required in determining our income tax provision and in evaluating our tax positions. The recognition and measurement of a tax position is based on management’s best judgment given the facts, circumstances and information available at the reporting date. Inherent in determining our annual effective income tax rate are judgments regarding business plans, planning opportunities and expectations about future outcomes. Realization of certain deferred tax assets, primarily net operating loss carryforwards, is dependent upon generating sufficient future taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. We establish valuation allowances for deferred tax assets when the amount of expected future taxable income is not likely to support the use of the deduction or credit, and release these allowances when it is more likely than not that these deductions or credits will be used. We operate in multiple jurisdictions with complex tax policy and regulatory environments. In certain of these jurisdictions, we may take tax positions that management believes are supportable, but are potentially subject to successful challenge by the applicable taxing authority. We evaluate our tax positions and establish liabilities in accordance with the applicable accounting guidance on uncertainty in income taxes. We review these tax uncertainties in light of changing facts and circumstances, such as the progress of tax audits, and adjust them accordingly. Because there are a number of estimates and assumptions inherent in calculating the various components of our income tax provision, future events such as changes in tax legislation, the geographic mix of earnings, completion of tax audits or earnings repatriation plans could have an effect on those estimates and our effective income tax rate. Advertising Advertising and marketing costs are expensed as incurred and are reflected in selling, general and administrative expenses. Research and Development Expenditures Research and development expenditures are expensed as incurred and are recorded in selling, general and administrative expenses in the consolidated statements of operations. Most of our manufacturing facilities have chemists and technicians on staff involved in product development, quality assurance, quality control and providing technical services to customers. Research, development and technical service efforts are conducted at various facilities. Our animal health research and development activities relate to: fermentation development and microbiological strain improvement; vaccine development; chemical synthesis and formulation development; nutritional specialties development; and ethanol-related products. Stock-Based Compensation All stock-based compensation to employees, including grants of stock options, is expensed over the requisite service period based on the grant date fair value of the awards. We determine the fair value of stock-based awards using the Black-Scholes option-pricing model that uses both historical and current market data to estimate the fair value. This method incorporates various assumptions such as the risk-free interest rate, expected volatility, expected dividend yield and expected life of the options. Net Income per Share and Weighted Average Shares Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period after giving effect to potential dilutive common shares resulting from the assumed exercise of stock options. For the years ended June 30, 2017, 2016 and 2015, all common share equivalents were included in the calculation of diluted net income per share. For the Years Ended June 30 2017 2016 2015 Net income $ 64,615 $ 82,728 $ 60,280 Weighted average number of shares–basic 39,524 39,254 38,969 Dilutive effect of stock options 518 708 846 Weighted average number of shares–diluted 40,042 39,962 39,815 Net income per share basic $ 1.63 $ 2.11 $ 1.55 diluted $ 1.61 $ 2.07 $ 1.51 New Accounting Standards ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, amends Compensation—Stock Compensation (Topic 718) ASU 2016-02, Leases (Topic 842) ASU 2015-11, Inventory (Topic 330) ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30) ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40) ASU 2014-09, Revenue from Contracts with Customers (Topic 606) |
Statements of Operations-Additi
Statements of Operations-Additional Information | 12 Months Ended |
Jun. 30, 2017 | |
Supplemental Income Statement Elements [Abstract] | |
Statements of Operations-Additional Information | 3. Statements of Operations—Additional Information For the Years Ended June 30 2017 2016 2015 Interest expense, net Term loan $ 11,482 $ 11,631 $ 11,717 Revolving credit facility 2,897 2,257 918 Amortization of debt issuance costs and debt discount 1,015 989 967 Acquisition-related accrued interest 1,373 1,476 613 Other 105 495 339 Interest expense 16,872 16,848 14,554 Interest (income) (1,966 ) (256 ) (249 ) $ 14,906 $ 16,592 $ 14,305 Depreciation and amortization Depreciation of property, plant and equipment $ 19,916 $ 17,659 $ 16,813 Amortization of intangible assets 5,950 5,559 4,560 Amortization of other assets 135 234 231 $ 26,001 $ 23,452 $ 21,604 Depreciation of property, plant and equipment includes amortization of capitalized software costs of $2,199, $2,915 and $2,905 during 2017, 2016 and 2015, respectively. Amortization of intangible assets is expected to be $5,521; $5,522; $5,397; $5,023; $5,025 and $26,314 for 2018, 2019, 2020, 2021, 2022 and thereafter, respectively. For the Years Ended June 30 2017 2016 2015 Research and development expenditures $ 9,442 $ 11,029 $ 9,511 |
Balance Sheets-Additional Infor
Balance Sheets-Additional Information | 12 Months Ended |
Jun. 30, 2017 | |
Balance Sheets Additional Information [Abstract] | |
Balance Sheets-Additional Information | 4. Balance Sheets—Additional Information As of June 30 2017 2016 Accounts receivable, net Trade accounts receivable $ 132,275 $ 128,743 Allowance for doubtful accounts (6,428 ) (4,953 ) $ 125,847 $ 123,790 As of June 30 2017 2016 2015 Allowance for doubtful accounts Balance at beginning of period $ 4,953 $ 3,378 $ 1,235 Provision for bad debts 1,412 1,774 2,587 Effect of changes in exchange rates 159 (132 ) (218 ) Bad debt write-offs (recovery) (96 ) (67 ) (226 ) Balance at end of period $ 6,428 $ 4,953 $ 3,378 As of June 30 2017 2016 Inventories Raw materials $ 54,861 $ 51,369 Work-in-process 12,402 8,074 Finished goods 93,970 108,248 $ 161,233 $ 167,691 As of June 30 2017 2016 Property, plant and equipment, net Land $ 9,584 $ 9,612 Buildings and improvements 65,958 64,265 Machinery and equipment 212,589 196,480 288,131 270,357 Accumulated depreciation (160,780 ) (143,034 ) $ 127,351 $ 127,323 Certain facilities in Israel are on leased land. The leases expire in 2023, 2035 and 2062. Property, plant and equipment, net includes internal-use software costs, net of accumulated depreciation, of $3,558 and $5,180 at June 30, 2017 and 2016, respectively. Machinery and equipment includes construction-in-progress of $2,690 and $5,595 at June 30, 2017 and 2016, respectively. As of June 30 Weighted- Average Useful Life (Years) 2017 2016 Intangibles, net Cost Medicated feed additive product registrations 10 $ 10,400 $ 11,744 Amprolium international marketing rights 10 4,292 4,292 Customer relationships 13 10,616 10,606 Technology 13 67,907 66,960 Distribution agreements 4 3,222 3,275 Trade names, trademarks and other 5 2,740 2,740 In-process research and development 1,800 1,579 100,977 101,196 Accumulated amortization Medicated feed additive product registrations (10,400 ) (10,846 ) Amprolium international marketing rights (4,292 ) (4,292 ) Customer relationships (6,995 ) (6,303 ) Technology (18,776 ) (13,877 ) Distribution agreements (3,222 ) (3,275 ) Trade names, trademarks and other (2,690 ) (2,508 ) (46,375 ) (41,101 ) $ 54,602 $ 60,095 As of June 30 2017 2016 Goodwill roll-forward Balance at beginning of period $ 21,121 $ 12,613 Purchase price allocation correction 2,861 — MVP acquisition — 8,508 Balance at end of period $ 23,982 $ 21,121 During the three months ended June 30, 2017, the Company determined goodwill and a liability for contingent consideration on acquisitions, initially recorded in the year ended June 30, 2015, were understated by $2,861. The Company corrected the error during the three months ended June 30, 2017, by adjusting goodwill, the liability and acquisition-related interest accrued subsequent to the acquisition date. We evaluated the effect of the error quantitatively and qualitatively, and concluded the error was not material to the current or any previously issued financial statements. As of June 30 2017 2016 Other assets Acquisition-related note receivable $ 5,000 $ 5,000 Equity method investments 4,235 4,580 Insurance investments 5,097 4,833 Deferred financing fees 2,552 1,064 Deferred income taxes 23,269 28,019 Deposits 7,074 5,992 Other 6,570 6,977 $ 53,797 $ 56,465 We evaluate our investments in equity method investees for impairment if circumstances indicate that the fair value of the investment may be impaired. The assets underlying a $3,719 equity investment are currently idled; we have concluded the investment is not currently impaired, based on expected future operating cash flows and/or disposal value. As of June 30 2017 2016 Accrued expenses and other current liabilities Employee related $ 26,553 $ 21,712 Commissions and rebates 6,443 3,722 Insurance related 1,515 1,780 Professional fees 3,823 3,573 Income and other taxes 3,035 1,910 Contingent consideration on acquisitions — 1,250 Other 11,283 11,756 $ 52,652 $ 45,703 As of June 30 2017 2016 Other liabilities U.S. pension plan $ 6,150 $ 21,371 International retirement plans 5,257 5,600 Supplemental retirement benefits, deferred compensation and other 9,783 8,984 Long term and deferred income taxes 8,946 8,205 Contingent consideration on acquisitions 11,751 9,172 Other long term liabilities 7,666 7,981 $ 49,553 $ 61,313 Contingent consideration on acquisitions includes $4,107 of accrued compensation related to the service of a key employee. As of June 30 2017 2016 Accumulated other comprehensive income (loss) Derivative instruments $ 2,686 $ 2,655 Foreign currency translation adjustment (43,556 ) (41,904 ) Unrecognized net pension gains (losses) (18,059 ) (30,977 ) (Provision) benefit for income taxes on derivative instruments (1,553 ) (1,548 ) (Provision) benefit for incomes taxes on long-term intercompany investments 8,166 8,166 (Provision) benefit for income taxes on pension gains (losses) (3,121 ) 1,823 $ (55,437 ) $ (61,785 ) |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisition In January 2016, we purchased the assets of MVP Laboratories, Inc. (“MVP”). MVP was a developer, manufacturer and marketer of livestock vaccines, adjuvants and other products. We acquired all of the assets and assumed certain liabilities used in MVP’s business, including working capital, intellectual property, manufacturing equipment, real property and facilities. The purchase price of approximately $46,576 was paid in cash primarily at closing. We incurred $618 in transaction expenses in connection with the acquisition, which were included in selling, general and administrative expenses. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations Working capital, net $ 4,914 Property, plant and equipment 4,774 Definite-lived intangible assets 28,380 Goodwill 8,508 Net assets acquired $ 46,576 The definite-lived intangible assets relate to developed products and will be amortized over an estimated useful life of 15 years. The business is included in the Animal Health segment and the goodwill is deductible for tax purposes. |
Debt
Debt | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Term Loans and Revolving Credit Facilities In June 2017, we entered into a new credit agreement (the “Credit Agreement”). Under the Credit Agreement, lenders extended credit to us in the form of a Term A loan, with an aggregate principal amount of $250,000 (the “Term A Loan”) and a revolving credit facility, with an aggregate principal amount of $250,000 (the “Revolver,” and together with the Term A Loan, the “Credit Facilities”). We used the proceeds of $314,138 from the Credit Facilities to repay all debt outstanding under the previous credit facilities as of the closing date and to pay fees and expenses of the transaction. We recorded a $2,598 loss on extinguishment of debt for certain unamortized debt issuance costs and debt discount related to the retired debt. Borrowings under the Credit Facilities bear interest at rates based on the ratio of the Company and its subsidiaries’ net consolidated first lien indebtedness to the Company and its subsidiaries’ consolidated EBITDA (the “First Lien Net Leverage Ratio”). The interest rate per annum applicable to the loans under the Credit Facilities is based on a fluctuating rate of interest equal to the sum of an applicable rate and, at the Company’s election from time to time, either (1) a Eurodollar rate determined by reference to LIBOR with a term as selected by the Company, or (2) a base rate determined by reference to the highest of (a) the rate as publicly announced from time to time by Bank of America as its “prime rate,” (b) the federal funds effective rate plus 0.50% and (c) the LIBOR daily floating rate plus 1.00%. In the case of LIBOR and Eurodollar rate loans, if the First Lien Net Leverage Ratio is (i) greater than 3.00:1.00; (ii) less than 3.00:1.00 but greater than or equal to 2.25:1.00; or, (iii) less than 2.25:1.00, the Credit Facilities have applicable rates equal to 2.00%; 1.75%; and, 1.50%, respectively. In the case of base rate loans, if the First Lien Net Leverage Ratio is (i) greater than 3.00:1.00; (ii) less than 3.00:1.00 but greater than or equal to 2.25:1.00; or, (iii) less than 2.25:1.00, the Credit Facilities have applicable rates equal to 1.00%; 0.75%; and, 0.50%, respectively. Pursuant to the terms of the Credit Agreement, the Credit Facilities are subject to various covenants that, among other things and subject to the permitted exceptions described therein, restrict us and our subsidiaries with respect to: (i) incurring additional debt; (ii) making certain restricted payments or making optional redemptions of other indebtedness; (iii) making investments or acquiring assets; (iv) disposing of assets (other than in the ordinary course of business); (v) creating any liens on our assets; (vi) entering into transactions with affiliates; (vii) entering into merger or consolidation transactions; and (viii) creating guarantee obligations; provided, however, that we are permitted to pay distributions to stockholders out of available cash subject to certain annual limitations and so long as no default or event of default under the Credit Facilities shall have occurred and be continuing at the time such distribution is declared. Indebtedness under the Credit Facilities is collateralized by a first priority lien on substantially all assets of Phibro and certain of our domestic subsidiaries. The Credit Agreement contains an acceleration clause should an event of default (as defined in the agreement) occur. The Credit Facilities mature on June 29, 2022. The Credit Agreement requires, among other things, compliance with financial covenants that permit: (i) a maximum First Lien Net Leverage Ratio of 4.00:1.00 and, (ii) a minimum interest coverage ratio of 3.00;1.00, each calculated on a trailing four-quarter basis. As of June 30, 2017, we were in compliance with the financial covenants. As of June 30, 2017, we had $65,000 in borrowings under the Revolver and had outstanding letters of credit of $5,957, leaving $179,043 available for borrowings and letters of credit under the Revolver. We obtain letters of credit in connection with certain regulatory and insurance obligations, inventory purchases and other contractual obligations. The terms of these letters of credit are all less than one year. As of June 30, 2017, the interest rates for the Revolver and the Term A Loan were 2.97% and 3.05%, respectively. The weighted-average interest rate for the previously outstanding revolver was 3.48% and 3.04% for the years ended June 30, 2017 and 2016, respectively. The weighted-average interest rate for the previously outstanding Term B Loan was 4.06% and 4.00% for the years ended June 30, 2017 and 2016, respectively. In July 2017, we entered into an interest rate swap agreement on $150 million of notional principal that effectively converts the floating LIBOR or base rate portion of our interest obligation on that amount of debt, to a fixed interest rate of 1.8325% plus the applicable rate. The agreement matures concurrent with the Credit Agreement. Foreign Credit Facilities Our Israel subsidiaries have aggregate credit facilities available of approximately $13.6 million (the “Israel Credit Facilities”). As of June 30, 2017, we had no outstanding borrowings or other commitments outstanding under the Israel Credit Facilities. Interest rate elections under the Israel Credit Facilities are LIBOR plus 2.25% or Prime Rate plus 0.50%. The Israel Credit Facilities mature in March 2018 and April 2018. Long-Term Debt As of June 30 2017 2016 Term A Loan due June 2022 $ 250,000 $ — Term B Loan due April 2021 — 284,200 Capitalized lease obligations — 7 250,000 284,207 Unamortized debt issuance costs and debt discount (1,859 ) (3,035 ) 248,141 281,172 Less: current maturities (6,250 ) (2,907 ) $ 241,891 $ 278,265 Aggregate Maturities of Long-Term Debt For the Years Ended June 30 2018 $ 6,250 2019 12,500 2020 12,500 2021 18,750 2022 200,000 Total $ 250,000 |
Common Stock, Preferred Stock a
Common Stock, Preferred Stock and Dividends | 12 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Common Stock, Preferred Stock and Dividends | 7. Common Stock, Preferred Stock and Dividends Preferred stock and common stock at June 30, 2017 and 2016 were: 2017 2016 2017 2016 As of June 30 Authorized Shares Par value Issued and outstanding shares Preferred stock 16,000,000 16,000,000 $ 0.0001 — — Common stock–Class A 300,000,000 300,000,000 $ 0.0001 19,249,132 18,519,757 Common stock–Class B 30,000,000 30,000,000 $ 0.0001 20,626,836 20,887,811 Common Stock General Except as otherwise provided by our amended and restated certificate of incorporation or applicable law, the holders of our Class A common stock and Class B common stock shall vote together as a single class. There are no cumulative voting rights. Holders of our Class A common stock and Class B common stock are entitled to receive dividends when and if declared by our Board of Directors out of funds legally available therefore, subject to any statutory or contractual restrictions on the payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding preferred stock. Upon our dissolution or liquidation or the sale of all or substantially all of our assets, after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of our Class A common stock and Class B common stock will be entitled to receive our remaining assets available for distribution. Class A Common Stock Holders of our Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Holders of our Class A common stock do not have preemptive, subscription or conversion rights. Our Class A common stock is not convertible and there are no redemption or sinking fund provisions applicable to our Class A common stock. Unless our Board of Directors determines otherwise, we will issue all of our capital stock in uncertificated form. Class B Common Stock Holders of our Class B common stock are entitled to 10 votes for each share held of record on all matters submitted to a vote of stockholders. BFI holds all of our outstanding Class B common stock. Holders of our Class B common stock do not have preemptive or subscription rights. There are no redemption or sinking fund provisions applicable to our Class B common stock. Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer, whether or not for value, except for certain transfers by and among BFI, its affiliates and certain Bendheim family members, as described in the amended and restated certificate of incorporation. Once transferred and converted into Class A common stock, the Class B common stock will not be reissued. In addition, all shares of Class B common stock will automatically convert to shares of Class A common stock when the outstanding shares of Class B common stock and Class A common stock held by BFI, its affiliates and certain Bendheim family members, together, is less than 15% of the total outstanding shares of Class A common stock and Class B common stock, taken as a single class. Holders of our Class B common stock have the right to require us to register the sales of their shares under the Securities Act, under the terms of an agreement between us and the holders. Preferred Stock We do not have any preferred stock outstanding. Our Board of Directors has the authority to issue shares of preferred stock from time to time on terms it may determine, to divide shares of preferred stock into one or more series and to fix the designations, preferences, privileges, and restrictions of preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, sinking fund terms, and the number of shares constituting any series or the designation of any series to the fullest extent permitted by the General Corporation Law of the State of Delaware. Dividends We declared and paid quarterly cash dividends totaling $15,827 for the year ended June 30, 2017, to holders of our Class A common stock and Class B common stock. |
Stock Option Plan
Stock Option Plan | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plan | 8. Stock Option Plan In March 2008, our Board of Directors and stockholders adopted the 2008 Incentive Plan (the “Incentive Plan”). The Incentive Plan provides directors, officers, employees and consultants to the Company with opportunities to purchase common stock pursuant to options that may be granted, and receive grants of restricted stock and other stock-based awards granted, from time to time by the Board of Directors or a committee approved by the Board. The Incentive Plan provides for grants of stock options, stock awards and other incentives for up to 6,630,000 shares. There were 5,131,620 Class A shares available for grant pursuant to the Incentive Plan as of June 30, 2017. There was no compensation expense recognized related to employee stock options for all periods presented in the consolidated financial statements. The following table details stock option activity for 2017: Option Weighted- Outstanding, June 30, 2016 1,046,040 $ 11.83 Exercised (468,400 ) $ 11.83 Outstanding, June 30, 2017 577,640 $ 11.83 Exercisable, June 30, 2017 577,640 $ 11.83 At June 30, 2017, exercisable options had a weighted-average remaining contractual life of 1.7 years and had a $14,568 aggregate intrinsic value, based on the closing market price at that date. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions Certain relatives of Jack C. Bendheim, our Chief Executive Officer, provided services to us as employees or consultants and received aggregate compensation and benefits of approximately $1,735, $1,910 and $1,927 during 2017, 2016 and 2015. Mr. Bendheim has sole authority to vote shares of our stock owned by BFI Co., LLC, an investment vehicle of the Bendheim family. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 10. Employee Benefit Plans The Company maintains a noncontributory defined benefit pension plan for all domestic nonunion employees employed on or prior to December 31, 2013, who meet certain requirements of age, length of service and hours worked per year. Plan benefits are based upon years of service and average compensation, as defined. The measurement dates for the pension plan were as of June 30, 2017, 2016 and 2015. In July 2016, we amended the domestic noncontributory defined benefit pension plan to eliminate credit for future service and compensation increases, effective as of September 30, 2016. The amendment resulted in a curtailment of the pension plan. During the three months ended September 30, 2016, we recorded a pension curtailment gain of $6,822 in other comprehensive income and an offsetting reduction in the liability for pension benefits included in other liabilities. Separately, we offered a lump sum payment option to certain pension plan participants. During the three months ended December 31, 2016, we recognized a partial settlement of the pension plan with respect to the lump sum settlement, which resulted in a charge to the consolidated statement of operations of $1,702, which we recorded as a component of selling, general and administrative expenses. Changes in the projected benefit obligation, plan assets and funded status of the domestic noncontributory defined benefit plan were: For the Years Ended June 30 2017 2016 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 75,664 $ 62,605 Service cost 845 2,939 Interest cost 2,045 2,893 Benefits paid (1,521 ) (1,271 ) Actuarial (gain) loss (1,448 ) 8,498 Liability (gain) loss due to curtailment (6,822 ) — Settlement payments (5,503 ) — Projected benefit obligation at end of year $ 63,260 $ 75,664 For the Years Ended June 30 2017 2016 Change in plan assets Fair value of plan assets at beginning of year $ 54,293 $ 44,032 Actual return on plan assets 5,647 (1,202 ) Employer contributions 4,194 12,734 Benefits paid (1,521 ) (1,271 ) Settlement payments (5,503 ) — Fair value of plan assets at end of year $ 57,110 $ 54,293 Funded status at end of year $ (6,150 ) $ (21,371 ) The funded status is included in other liabilities in the consolidated balance sheets. The Company expects to contribute approximately $4,109 to the pension plan during 2018. We seek to maintain an asset balance that meets the long-term funding requirements identified by actuarial projections while also satisfying ERISA fiduciary responsibilities. Accumulated other comprehensive (income) loss related to the pension plan was: For the Years Ended June 30 2017 2016 Accumulated Other Comprehensive (Income) Loss Related to Pension Plan Balance at beginning of period $ 30,977 $ 19,884 Amortization of net actuarial loss and prior service costs (9,213 ) (1,784 ) Current period net actuarial (gain) loss (3,705 ) 12,877 Net change (12,918 ) 11,093 Balance at end of period $ 18,059 $ 30,977 Amortization of unrecognized net actuarial loss and prior service costs will be approximately $407 during 2018. Net pension expense was: For the Years Ended June 30 2017 2016 2015 Service cost–benefits earned during the year $ 845 $ 2,939 $ 2,954 Interest cost on benefit obligation 2,045 2,893 2,618 Expected return on plan assets (3,389 ) (3,177 ) (2,828 ) Amortization of net actuarial loss and prior service costs 672 1,784 1,405 Curtailment expense 16 — — Settlement expense 1,702 — — Net pension expense $ 1,891 $ 4,439 $ 4,149 Significant actuarial assumptions for the plan were: For the Years Ended June 30 2017 2016 2015 Discount rate for service cost 4.0 % 4.6 % 4.5 % Discount rate for interest cost 3.2 % 4.6 % 4.5 % Expected rate of return on plan assets 6.1 % 6.1 % 6.7 % Discount rate for year-end benefit obligation 3.9 % 3.9 % 4.6 % The plan used the Aon Hewitt AA Bond Universe as a benchmark for its discount rate as of June 30, 2017, 2016 and 2015. The discount rate is determined by matching the pension plan’s timing and amount of expected cash outflows to a bond yield curve constructed from a population of AA-rated corporate bond issues that are generally non-callable and have at least $250 million par value outstanding. From this, the discount rate that results in the same present value is calculated. During fiscal 2017, the plan was re-measured July 31 and October 31 to recognize a plan freeze and lump sum window, respectively. The discount rate for 2017 service cost and interest cost noted above was determined as the weighted average of the discount rates used for each portion of the fiscal year in effect. Estimated future benefit payments, including benefits attributable to future service, are: For the Years Ended June 30 2018 $ 2,156 2019 2,388 2020 2,612 2021 2,815 2022 3,014 2023–2027 17,073 The plan’s target asset allocations for 2018 and the weighted-average asset allocation of plan assets as of June 30, 2017 and 2016 are: Target Percentage of Plan Assets For the years ended June 30 2018 2017 2016 Debt securities 48%–68% 33 % 19 % Equity securities 20%–40% 38 % 43 % Global asset allocation/risk parity (1) 2%–22% 17 % 26 % Other 0%–10% 12 % 12 % (1) The global asset allocation/risk parity category consists of a variety of asset classes including, but not limited to, global bonds, global equities, real estate and commodities. The expected long-term rate of return for the plan’s total assets is generally based on the plan’s asset mix. In determining the rate to use, we consider the expected long-term real returns on asset categories, expectations for inflation, estimates of the effect of active management and actual historical returns. The investment policy and strategy is to earn a long-term investment return sufficient to meet the obligations of the plans, while assuming a moderate amount of risk in order to maximize investment return. In order to achieve this goal, assets are invested in a diversified portfolio consisting of equity securities, debt securities, and other investments in a manner consistent with ERISA’s fiduciary requirements. The fair values of the Company’s plan assets by asset category were: Fair Value Measurements Using As of June 30, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 3,023 $ — $ — $ 3,023 Common-collective funds Global large cap equities — 12,385 7,132 19,517 Fixed income securities — 16,850 1,136 17,986 Global asset allocations/risk parity — 5,822 — 5,822 Mutual funds Global Equities 1,972 — — 1,972 Fixed income securities 1,099 — — 1,099 Global asset allocations/risk parity — — — — Other Global asset allocations/risk parity — — 4,103 4,103 Other — — 3,588 3,588 $ 6,094 $ 35,057 $ 15,959 $ 57,110 Fair Value Measurements Using As of June 30, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 713 $ — $ — $ 713 Common-collective funds Global large cap equities — 11,963 6,596 18,559 Fixed income securities — 7,583 — 7,583 Global asset allocations/risk parity — 4,878 — 4,878 Mutual funds Global Equities 4,611 — — 4,611 Fixed income securities 1,366 — — 1,366 Global asset allocations/risk parity 2,667 — — 2,667 Other Fixed income securities — — 1,434 1,434 Global asset allocations/risk parity — — 6,554 6,554 Other — — 5,929 5,929 $ 9,357 $ 24,424 $ 20,513 $ 54,294 The table below provides a summary of the changes in the fair value of Level 3 assets: Change in Fair Value Level 3 assets 2017 2016 Balance at beginning of period $ 20,513 $ 8,989 Redemptions (9,353 ) (3,656 ) Purchases 2,533 15,695 Change in fair value 2,266 (515 ) Balance at end of period $ 15,959 $ 20,513 The following outlines the valuation methodologies used to estimate the fair value of our pension plan assets: • Cash and cash equivalents are valued at $1 per unit; • Common-collective funds are determined based on current market values of the underlying assets of the fund; • Mutual funds and foreign currency deposits are valued using quoted market prices in active markets; and • For Level 3 managed assets, business appraisers use a combination of valuations and appraisal methodologies, as well as a number of assumptions to create a price that brokers evaluate. For Level 3 non-managed assets, pricing is provided by various sources, such as issuer or investment manager. Our consolidated balance sheets include other liabilities of $15,139 and $14,898 as of June 30, 2017 and 2016, respectively, for other employee benefits, including international retirement plans, supplemental retirement benefits and long term incentive arrangements. Expense under these plans was $4,304, $5,239, and $3,286 for 2017, 2016 and 2015, respectively. We provide a 401(k) retirement savings plan, under which United States employees may make pre-tax and post-tax contributions. We make a matching contribution equal to 100% of the first 1% of an employee’s contribution and make a matching contribution equal to 50% of the next 5% of an employee’s contribution. Effective January 1, 2014, for domestic employees hired on or after that date and effective October 1, 2016, for all domestic employees, such employees receive a non-elective Company contribution of 3% of compensation and are eligible to receive an additional discretionary contribution of up to 4% of compensation, depending on the employee’s age and years of service, provided that such payments comply with mandatory non-discrimination testing. Participants are fully vested in employer contributions after two years of service. Our contribution expense was $4,154, $2,309, and $1,583, in 2017, 2016 and 2015, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes Income (loss) before income taxes was: For the Years Ended June 30 2017 2016 2015 Domestic $ 18,015 $ 2,027 $ 15,937 Foreign 62,528 74,734 62,826 Income (loss) before income taxes $ 80,543 $ 76,761 $ 78,763 Components of the provision for income taxes were: For the Years Ended June 30 2017 2016 2015 Current provision (benefit): Federal $ 383 $ (2,889 ) $ (468 ) State and local 724 (474 ) (48 ) Foreign 14,839 20,168 13,868 Total current provision 15,946 16,805 13,352 Deferred provision (benefit): Federal 4,675 (2,985 ) 6,157 State and local 251 911 1,311 Foreign (833 ) (989 ) 5,933 Change in valuation allowance–domestic — (19,588 ) (7,468 ) Change in valuation allowance–foreign (4,111 ) (121 ) (802 ) Total deferred provision (18 ) (22,772 ) 5,131 Provision (benefit) for income taxes $ 15,928 $ (5,967 ) $ 18,483 During 2017, based on continued profitability, we concluded that it was more likely than not that the value of certain foreign deferred tax assets would be realized, and it was no longer necessary to maintain a related valuation allowance. Accordingly, we released the valuation allowance related to these foreign deferred tax assets. We review the realizability of our deferred tax assets when circumstances indicate a review is required. Reconciliations of the federal statutory rate to the Company’s effective tax rate were: For the Years Ended June 30 2017 2016 2015 Federal income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal benefit 0.9 0.2 0.2 Change in federal valuation allowance — (27.8 ) (7.8 ) Change in foreign valuation allowance (5.1 ) — — Foreign income tax rates (6.8 ) (5.5 ) (2.2 ) Foreign withholding tax 0.1 0.1 0.3 Foreign incentive tax rates (3.1 ) (4.5 ) (4.1 ) Domestic tax on foreign income 2.7 2.7 0.9 Change in liability for uncertain tax positions 1.6 (4.9 ) 1.5 Permanent items (0.9 ) 1.5 (0.6 ) Exercise of employee stock options (3.8 ) (4.6 ) — Other (0.8 ) — 0.3 Effective tax rate 19.8 % (7.8 )% 23.5 % We have not provided for United States or additional foreign taxes on approximately $211,631 of undistributed earnings of foreign subsidiaries, which earnings have been or are intended to be indefinitely reinvested. It is not practicable at this time to determine the amount of income tax liability that would result should such earnings be repatriated. Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. The tax effects of significant temporary differences that comprise deferred tax assets and liabilities were: As of June 30 2017 2016 Deferred tax assets: Employee related accruals $ 7,146 $ 12,603 Inventory 4,851 2,573 Environmental remediation 2,280 2,208 Net operating loss carry forwards–domestic 4,893 13,768 Net operating loss carry forwards–foreign 4,023 4,346 Other 11,139 7,566 34,332 43,064 Valuation allowance (438 ) (4,614 ) 33,894 38,450 Deferred tax liabilities: Property, plant and equipment and intangible assets (9,671 ) (9,725 ) Other (2,004 ) (1,956 ) (11,675 ) (11,681 ) Net deferred tax asset $ 22,219 $ 26,769 Deferred taxes are included in the consolidated balance sheets as follows: As of June 30 2017 2016 Other assets $ 23,269 $ 28,019 Other liabilities (1,050 ) (1,250 ) $ 22,219 $ 26,769 The valuation allowances for deferred tax assets were: As of June 30 2017 2016 2015 Balance at beginning of period $ 4,614 $ 26,622 $ 32,892 Provision for income taxes (4,111 ) (19,709 ) (6,270 ) Net operating loss utilization (65 ) (2,299 ) — Balance at end of period $ 438 $ 4,614 $ 26,622 The valuation allowance for deferred tax assets as of June 30, 2017, is solely related to foreign jurisdictions. The Company has approximately $9,191 of domestic federal net operating loss carry forwards that expire in 2028 through 2036 and approximately $32,555 of state net operating loss carry forwards that will expire in 2017 through 2036. In addition, the Company has approximately $11,915 of foreign net operating loss carry forwards, most of which are in jurisdictions that have no expiration. As tax law is complex and often subject to varied interpretations, it is uncertain whether some of our tax positions will be sustained upon examination. Tax liabilities associated with uncertain tax positions represent unrecognized tax benefits, which arise when the estimated benefit recorded in our financial statements differs from the amounts taken or expected to be taken in a tax return because of the uncertainties described above. Substantially all of these unrecognized tax benefits, if recognized, would benefit our effective income tax rate. The reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows: As of June 30 2017 2016 2015 Unrecognized tax benefits–beginning of period $ 4,946 $ 8,078 $ 7,420 Tax position changes–prior periods — 188 (24 ) Tax position changes–current period 1,490 472 1,945 Lapse of statute of limitations (391 ) (3,700 ) (907 ) Translation 508 (92 ) (356 ) Unrecognized tax benefits–end of period 6,553 4,946 8,078 Interest and penalties–end of period 449 308 1,326 Total liabilities related to uncertain tax $ 7,002 $ 5,254 $ 9,404 We recognize interest and penalties associated with uncertain tax positions as a component of the provision for income taxes. We recognized interest and penalties expense (income) of $116, $(980) and $66 for 2017, 2016 and 2015, respectively. During 2018, we potentially will reverse $300 of uncertain tax positions as a result of the lapse of the statute of limitations, with a corresponding benefit to the provision for income taxes. One of our international subsidiaries is undergoing an income tax examination for the years 2013 and 2014. The examination is ongoing and is expected to be completed during 2018. We are unable to determine the effect, if any, of the results of the examination on the provision for income taxes. Income tax returns for the following periods are no longer subject to examination by the relevant tax authorities: • U.S. federal and significant states, through June 30, 2007; • Brazil, through December 31, 2011; • Israel, through June 30, 2012 for certain subsidiaries and through June 30, 2013 for certain subsidiaries. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Leases We lease land and office, warehouse and manufacturing equipment and facilities for minimum annual rentals, plus certain cost escalations. We record rent expense on a straight-line basis over the term of the lease. At June 30, 2017, we had the following future minimum lease commitments: For the Years Ended June 30 Non-cancellable operating leases 2018 $ 5,363 2019 4,584 2020 3,972 2021 3,430 2022 2,833 Thereafter 2,607 Total minimum lease payments $ 22,789 Rent expense under operating leases was $7,715, $8,131, and $7,240 for 2017, 2016 and 2015, respectively. Environmental Our operations and properties are subject to extensive federal, state, local and foreign laws and regulations, including those governing pollution; protection of the environment; the use, management, and release of hazardous materials, substances and wastes; air emissions; greenhouse gas emissions; water use, supply and discharges; the investigation and remediation of contamination; the manufacture, distribution, and sale of regulated materials, including pesticides; the importing, exporting and transportation of products; and the health and safety of our employees (collectively, “Environmental Laws”). As such, the nature of our current and former operations exposes us to the risk of claims with respect to such matters, including fines, penalties, and remediation obligations that may be imposed by regulatory authorities. Under certain circumstances, we might be required to curtail operations until a particular problem is remedied. Known costs and expenses under Environmental Laws incidental to ongoing operations, including the cost of litigation proceedings relating to environmental matters, are included within operating results. Potential costs and expenses may also be incurred in connection with the repair or upgrade of facilities to meet existing or new requirements under Environmental Laws or to investigate or remediate potential or actual contamination and from time to time we establish reserves for such contemplated investigation and remediation costs. In many instances, the ultimate costs under Environmental Laws and the time period during which such costs are likely to be incurred are difficult to predict. While we believe that our operations are currently in material compliance with Environmental Laws, we have, from time to time, received notices of violation from governmental authorities, and have been involved in civil or criminal action for such violations. Additionally, at various sites, our subsidiaries are engaged in continuing investigation, remediation and/or monitoring efforts to address contamination associated with historic operations of the sites. We devote considerable resources to complying with Environmental Laws and managing environmental liabilities. We have developed programs to identify requirements under, and maintain compliance with Environmental Laws; however, we cannot predict with certainty the effect of increased and more stringent regulation on our operations, future capital expenditure requirements, or the cost of compliance. The nature of our current and former operations exposes us to the risk of claims with respect to environmental matters and we cannot assure we will not incur material costs and liabilities in connection with such claims. Based upon our experience to date, we believe that the future cost of compliance with existing Environmental Laws, and liabilities for known environmental claims pursuant to such Environmental Laws, will not have a material adverse effect on our financial position, results of operations, cash flows or liquidity. The United States Environmental Protection Agency (the “EPA”) is investigating and planning for the remediation of offsite contaminated groundwater that has migrated from the Omega Chemical Corporation Superfund Site (“Omega Chemical Site”), which is upgradient of Phibro-Tech’s Santa Fe Springs, California facility. The EPA has named Phibro-Tech and certain other subsidiaries of PAHC as potentially responsible parties (“PRPs”) due to groundwater contamination from Phibro-Tech’s Santa Fe Springs facility that has allegedly commingled with contaminated groundwater from the Omega Chemical Site. In September 2012, the EPA notified approximately 140 PRPs, including Phibro-Tech and the other subsidiaries, that they have been identified as potentially responsible for remedial action for the groundwater plume affected by the Omega Chemical Site and for EPA oversight and response costs. Phibro-Tech contends that groundwater contamination at its site is due to historical operations that pre-date Phibro-Tech and/or contaminated groundwater that has migrated from upgradient properties. In addition, a successor to a prior owner of the Phibro-Tech site has asserted that PAHC and Phibro-Tech are obligated to provide indemnification for its potential liability and defense costs relating to the groundwater plume affected by the Omega Chemical Site. Phibro-Tech has vigorously contested this position and has asserted that the successor to the prior owner is required to indemnify Phibro-Tech for its potential liability and defense costs. Furthermore, a nearby property owner has filed a complaint in the Superior Court of the State of California against many of the PRPs allegedly associated with the groundwater plume affected by the Omega Chemical Site (including Phibro-Tech) for alleged contamination of groundwater underneath its property, and a group of companies that sent chemicals to the Omega Chemical Site for processing and recycling has filed a complaint under CERCLA, RCRA and the common law public nuisance doctrine in the United States District Court for the Central District of California against many of the PRPs allegedly associated with the groundwater plume affected by the Omega Chemical Site (including Phibro-Tech) for contribution toward past and future costs associated with the investigation and remediation of the groundwater plume affected by the Omega Chemical Site. Due to the ongoing nature of the EPA’s investigation and Phibro-Tech’s dispute with the prior owner’s successor, at this time we cannot predict with any degree of certainty what, if any, liability Phibro-Tech or the other subsidiaries may ultimately have for investigation, remediation and the EPA oversight and response costs associated with the affected groundwater plume. Based upon information available, to the extent such costs can be estimated with reasonable certainty, we estimated the cost for further investigation and remediation of identified soil and groundwater problems at operating sites, closed sites and third-party sites, and closure costs for closed sites, to be approximately $7,211 and $7,024 at June 30, 2017 and 2016, respectively, which is included in current and long-term liabilities on the consolidated balance sheets. However, future events, such as new information, changes in existing Environmental Laws or their interpretation, and more vigorous enforcement policies of regulatory agencies, may give rise to additional expenditures or liabilities that could be material. For all purposes of the discussion under this caption and elsewhere in this report, it should be noted that we take and have taken the position that neither PAHC nor any of our subsidiaries is liable for environmental or other claims made against one or more of our other subsidiaries or for which any of such other subsidiaries may ultimately be responsible. Claims and Litigation During 2017, we recorded a $7,500 gain in selling, general and administrative expenses resulting from a payment to us by an insurance carrier. The payment reflected the settlement of our claims against the carrier under our liability insurance policies, which arose from damages incurred in 2010 by certain customers resulting from the use of one of our animal health products. PAHC and its subsidiaries are party to a number of claims and lawsuits arising out of the normal course of business including product liabilities, payment disputes and governmental regulation. Certain of these actions seek damages in various amounts. In many cases, such claims are covered by insurance. We believe that none of the claims or pending lawsuits, either individually or in the aggregate, will have a material adverse effect on our financial position, results of operations, cash flows or liquidity. Employment and Severance Agreements We have entered into employment agreements with certain executive management and other employees that specify severance benefits of up to 15 months of the employee’s compensation. |
Derivatives
Derivatives | 12 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 13. Derivatives We monitor our exposure to foreign currency exchange rates and interest rates and from time-to-time use derivatives to manage certain of these risks. The foreign currency derivatives generally have an expiration or maturity of two years or less and are intended to hedge cash flows related to the purchase of inventory. We designate derivatives as a hedge of a forecasted transaction or of the variability of the cash flows to be received or paid in the future related to a recognized asset or liability (cash flow hedge). We record the portion of the changes in the value of the derivative, related to a hedged asset or liability (the effective portion), in accumulated other comprehensive income (loss). As the hedged item is sold, we recognize the gain or loss recorded in accumulated other comprehensive income (loss) to the consolidated statements of operations on the same line where the hedged item is charged when released/sold. We immediately recognize in the consolidated statements of operations in the same line as the hedged item, the portion of the changes in fair value of derivatives used as cash flow hedges that is not offset by changes in the expected cash flows related to a recognized asset or liability (the ineffective portion). We routinely assess whether the derivatives used to hedge transactions are effective. If we determine a derivative ceases to be an effective hedge, we discontinue hedge accounting in the period of the assessment for that derivative, and immediately recognize any unrealized gains or losses related to the fair value of that derivative in the consolidated statements of operations. We record derivatives at fair value in the consolidated balance sheets. For additional details regarding fair value, see “—Fair Value Measurements.” The following table details the Company’s outstanding derivatives that are designated and effective as cash flow hedges as of June 30, 2017: Instrument Hedge Notional Fair value as of June 30, 2017 2016 Options Brazilian Real calls R$ 39,000 $ 2,686 $ 3,027 Options Brazilian Real puts R$ 39,000 $ — $ (372 ) The fair values as of June 30, 2017, are unrealized and will fluctuate based on future exchange rates until the derivative contracts mature. Other comprehensive income (loss) included $31 of unrecognized gains for the twelve months ended June 30, 2017. Accumulated other comprehensive income (loss) at June 30, 2017 included $2,686 of net unrecognized gains on derivative instruments; we estimate that $1,759 of those gains will be recognized in earnings within the next twelve months. At June 30, 2017, realized gains of $1,011 related to matured contracts were recorded as a component of inventory. We anticipate these gains will be recognized as an offset to cost of goods sold within the next twelve months. At June 30, 2016, realized losses of $1,528 related to matured contracts were recorded as a component of inventory and subsequently recognized in cost of goods sold during 2017. We recognize gains (losses) related to these derivative instruments as a component of cost of goods sold at the time the hedged item is sold. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Financial assets and liabilities are measured at fair value using the three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy of a particular asset or liability depends on the inputs used in the valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally derived (unobservable). Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs based on a company’s own assumptions about market participant assumptions developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1— Quoted prices in active markets for identical assets or liabilities. Level 2— Significant observable inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data. Level 3— Unobservable inputs for which there is little or no market data available, and that are significant to the overall fair value measurement, are employed that require the reporting entity to develop its own assumptions. In assessing the fair value of financial instruments at June 30, 2017 and 2016, we used a variety of methods and assumptions that were based on estimates of market conditions and risks existing at the time. Current Assets and Liabilities We consider the carrying amounts of current assets and current liabilities to be representative of their fair value because of the current nature of these items. Letters of Credit We obtain letters of credit in connection with certain regulatory and insurance obligations, inventory purchases and other contractual obligations. The carrying values of these letters of credit are considered to be representative of their fair values because of the nature of the instruments. Debt We record debt, including term loans and revolver balances, at book value in our consolidated financial statements. We believe the carrying value of the debt is approximately equal to its fair value, due to the variable nature of the instruments. We determine the fair value of contingent consideration on acquisitions based on contractual terms, our current forecast of performance factors related to the acquired business and an applicable discount rate. Derivatives We determine the fair value of derivative instruments based upon pricing models using observable market inputs for these types of financial instruments, such as spot and forward currency translation rates. As of June 30 2017 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivatives asset $ — $ 2,686 $ — $ — $ 2,655 $ — Contingent consideration on acquisitions $ — $ — $ (7,644 ) $ — $ — $ (6,745 ) Fair Value of Level 3 Assets (Liabilities) The table below provides a summary of the changes in the fair value of Level 3 assets (liabilities): 2017 2016 Balance, June 30, 2016 $ (6,745 ) $ (5,465 ) Adjustment to contingent consideration 404 — Acquisition-related accrued interest (1,373 ) (1,476 ) Payment 70 196 Balance, June 30, 2017 $ (7,644 ) $ (6,745 ) For a detailed discussion on the fair value of our pension plan assets, see “—Employee Benefit Plans.” |
Business Segments
Business Segments | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | 15. Business Segments The Animal Health segment manufactures and markets a broad range of products for food animals, including poultry, swine, cattle, dairy and aquaculture. The business includes net sales of medicated feed additives and other related products, nutritional specialty products and vaccines. The Mineral Nutrition segment manufactures and markets a broad range of trace minerals for food animals. The Performance Products segment manufactures and markets a variety of products for use in the personal care, automotive, industrial chemical and chemical catalyst industries. We evaluate performance and allocate resources based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to these segments and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, business technology, legal, finance, human resources and business development. Corporate assets include cash and cash equivalents, certain debt issue costs, income tax related assets and certain other assets. We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as income before income taxes plus (a) interest expense, net, (b) depreciation and amortization, (c) (income) loss from, and disposal of, discontinued operations, (d) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency gains and losses and loss on extinguishment of debt, and (e) certain items that we consider to be unusual, non-operational or non-recurring. The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein. For the Years Ended June 30 2017 2016 2015 Net sales MFAs and other $ 321,430 $ 339,916 $ 335,735 Nutritional Specialties 111,282 94,084 81,702 Vaccines 65,033 52,140 53,363 Animal Health 497,745 486,140 470,800 Mineral Nutrition 218,298 216,685 227,102 Performance Products 48,238 48,701 50,689 Total segments $ 764,281 $ 751,526 $ 748,591 Depreciation and amortization Animal Health $ 20,132 $ 17,149 $ 15,430 Mineral Nutrition 2,332 2,467 2,468 Performance Products 939 807 577 Total segments $ 23,403 $ 20,423 $ 18,475 Adjusted EBITDA Animal Health $ 130,261 $ 127,442 $ 120,259 Mineral Nutrition 17,426 14,971 14,429 Performance Products 2,057 970 2,646 Total segments $ 149,744 $ 143,383 $ 137,334 Reconciliation of income before income taxes to Adjusted EBITDA Income before income taxes $ 80,543 $ 76,761 $ 78,763 Interest expense, net 14,906 16,592 14,305 Depreciation and amortization–Total 23,403 20,423 18,475 Depreciation and amortization–Corporate 2,598 3,029 3,129 Corporate costs 29,625 29,323 27,315 Acquisition-related cost of goods sold — 2,566 — Acquisition-related accrued compensation 1,680 1,680 747 Acquisition-related transaction costs 1,274 618 — Acquisition-related other, net (972 ) — — Pension settlement cost 1,702 — — Gain on insurance settlement (7,500 ) — — Foreign currency (gains) losses, net (113 ) (7,609 ) (5,400 ) Loss on extinguishment of debt 2,598 — — Adjusted EBITDA–Total segments $ 149,744 $ 143,383 $ 137,334 Acquisition-related other, net includes the net effect of adjustments to contingent consideration on acquisitions and impairments of intangible assets. As of June 30 2017 2016 Identifiable assets Animal Health $ 442,521 $ 444,751 Mineral Nutrition 55,184 57,939 Performance Products 23,681 21,557 Total segments 521,386 524,247 Corporate 102,011 83,588 Total $ 623,397 $ 607,835 The Animal Health segment includes all goodwill of the Company. The Animal Health segment includes advances to and investment in an equity method investee of $3,719 and $4,076 as of June 30, 2017 and 2016, respectively. The Performance Products segment includes an investment in equity method investee of $516 and $504 as of June 30, 2017 and 2016, respectively. Corporate assets include cash and cash equivalents, certain debt issuance costs, income tax related assets and certain other assets. |
Geographic Information
Geographic Information | 12 Months Ended |
Jun. 30, 2017 | |
Segments, Geographical Areas [Abstract] | |
Geographic Information | 16. Geographic Information The following is information about our geographic operations. Information is attributed to the geographic areas based on the locations of our subsidiaries. For the Years Ended June 30 2017 2016 2015 Net sales United States $ 484,148 $ 473,247 $ 475,942 Israel 92,752 89,999 93,459 Latin America and Canada 96,687 105,667 99,578 Europe and Africa 40,211 36,177 36,397 Asia/Pacific 50,483 46,436 43,215 $ 764,281 $ 751,526 $ 748,591 As of June 30 2017 2016 Property, plant and equipment, net United States $ 56,459 $ 56,735 Israel 47,027 46,706 Brazil 22,793 22,720 Other 1,072 1,162 $ 127,351 $ 127,323 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies and New Accounting Standards (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of Phibro and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated from the consolidated financial statements. The decision whether or not to consolidate an entity requires consideration of majority voting interests, as well as effective control over the entity. We present our financial statements on the basis of our fiscal year ending June 30. All references to years in these consolidated financial statements refer to the fiscal year ending or ended on June 30 of that year. |
Risks, Uncertainties and Liquidity | Risks, Uncertainties and Liquidity The issue of the potential for increased bacterial resistance to certain antibiotics used in certain food-producing animals is the subject of discussions on a worldwide basis and, in certain instances, has led to government restrictions on or banning of the use of antibiotics in food-producing animals. The sale of antibiotics and antibacterials is a material portion of our business. Should product bans or restrictions, public perception, competition or other developments result in restrictions on the sale of such products, it could have a material adverse effect on our financial position, results of operations and cash flows. The testing, manufacturing, and marketing of certain of our products are subject to extensive regulation by numerous government authorities in the United States and other countries. We have significant assets in Israel, Brazil and other locations outside of the United States and a significant portion of our sales and earnings are attributable to operations conducted abroad. Our assets, results of operations and future prospects are subject to currency exchange fluctuations and restrictions, energy shortages, other economic developments, political or social instability in some countries, and uncertainty of, and governmental control over, commercial rights, which could result in a material adverse effect on our financial position, results of operations and cash flows. We are subject to environmental laws and regulations governing the use, storage, handling, generation, treatment, emission, release, discharge and disposal of certain materials and wastes, the remediation of contaminated soil and groundwater, the manufacture, sale and use of regulated materials, including pesticides, and the health and safety of employees. As such, the nature of our current and former operations and those of our subsidiaries expose Phibro and our subsidiaries to the risk of claims with respect to such matters. |
Use of Estimates | Use of Estimates Preparation of the consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. Actual results could differ from these estimates. Significant estimates include valuation of intangible assets, depreciation and amortization periods of long-lived and intangible assets, recoverability of long-lived and intangible assets and goodwill, realizability of deferred income tax and value-added tax assets, legal and environmental matters and actuarial assumptions related to our pension plans. We regularly evaluate our estimates and assumptions using historical experience and other factors. Our estimates are based on complex judgments, probabilities and assumptions that we believe to be reasonable. |
Revenue Recognition | Revenue Recognition We recognize revenue for sales of our goods upon transfer of title and when risk of loss passes to the customer. Certain of our businesses have terms where title and risk of loss transfer on shipment. Certain of our businesses have terms where title and risk of loss transfer on delivery. Recognition of revenue also requires that persuasive evidence of an arrangement exists, the selling price is fixed or determinable, the collection of sales proceeds is reasonably assured and that we have no further performance obligations. We record reductions to revenue for the estimated costs of customer programs and incentive offerings, including pricing arrangements and other volume-based incentives, at the time the sale is recorded. Net sales include royalty and licensing income from licensing agreements when all performance obligations have been met. Net sales include shipping and handling fees billed to customers. Delivery costs to our customers are included in cost of goods sold in the consolidated statements of operations. Net sales exclude value-added and other taxes based on sales. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include highly liquid investments with maturities of three months or less when purchased. Cash and cash equivalents held at financial institutions may at times exceed federally insured amounts. We believe we mitigate such risk by investing in or through major financial institutions. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. We grant credit terms in the normal course of business and generally do not require collateral or other security to support credit sales. Our ten largest customers represented, in aggregate, approximately 21% and 27% of accounts receivable at June 30, 2017 and 2016, respectively. The allowance for doubtful accounts is our best estimate of the probable credit losses in existing accounts receivable. We monitor the financial performance and creditworthiness of our customers so that we can properly assess and respond to changes in their credit profile. We also monitor domestic and international economic conditions for the potential effect on our customers. Past due balances are reviewed individually for collectability. Account balances are charged against the allowance when we determine it is probable the receivable will not be recovered. |
Inventories | Inventories Inventories are valued at the lower of cost or market. Cost is determined principally under weighted average and standard cost methods, which approximate first-in, first-out (FIFO) cost. Obsolete and unsalable inventories, if any, are reflected at estimated net realizable value. Inventory costs include materials, direct labor and manufacturing overhead. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is charged to results of operations using the straight-line method based upon the assets’ estimated useful lives ranging from two to 30 years for buildings and improvements, and one to 10 years for machinery and equipment. |
Capitalized Software Costs | Capitalized Software Costs We capitalize costs to obtain, develop and implement software for internal use. Amounts paid to third parties and costs of internal employees who are directly associated with the software project are also capitalized, depending on the stage of development. We expense software costs that do not meet the capitalization criteria. Capitalized software costs are included in property, plant and equipment on the consolidated balance sheets and are amortized on a straight-line basis over 3 to 7 years. |
Deferred Financing Costs | Deferred Financing Costs Costs and original issue discounts or premiums related to issuance or modification of our debt are deferred on the consolidated balance sheet and amortized over the lives of the respective debt instruments. Amortization of deferred financing costs is included in interest expense in the consolidated statements of operations. During the three months ended September 30, 2016, we adopted the provisions of FASB Accounting Standards Update (“ASU”) 2015-03, Interest—Imputation of Interest (Subtopic 835-30) |
Acquisitions, Intangible Assets and Goodwill | Acquisitions, Intangible Assets and Goodwill Our consolidated financial statements reflect the operations of an acquired business beginning as of the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values at the date of acquisition; goodwill is recorded for any excess of the purchase price over the fair values of the net assets acquired. Significant judgment is required to determine the fair value of certain tangible and intangible assets and in assigning their respective useful lives. Accordingly, we typically obtain the assistance of third-party valuation specialists for significant tangible and intangible assets. The fair values are based on available historical information and on future expectations and assumptions deemed reasonable by management, but are inherently uncertain. We typically use an income method to measure the fair value of intangible assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants, and include the amount and timing of future cash flows (including expected growth rates and profitability), the underlying product or technology life cycles, economic barriers to entry and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances could affect the accuracy or validity of the estimates and assumptions. Determining the useful life of an intangible asset also requires judgment. Our estimates of the useful lives of intangible assets are based on factors including competitive environment, underlying product life cycles, operating plans and the macroeconomic environment of the countries in which the products are sold. Intangible assets are amortized over their estimated lives. Intangible assets associated with acquired in-process research and development activities (“IPR&D”) are not amortized until a product is available for sale. |
Long-Lived Assets and Goodwill | Long-Lived Assets and Goodwill We periodically review our long-lived and amortizable intangible assets for impairment and assess whether significant events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. Such circumstances may include a significant decrease in the market price of an asset, a significant adverse change in the manner in which the asset is being used or in its physical condition or a history of operating or cash flow losses associated with the use of an asset. We recognize an impairment loss when the carrying amount of an asset exceeds the anticipated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss is the excess of the asset’s carrying value over its fair value. In addition, we periodically reassess the estimated remaining useful lives of our long-lived and amortizable intangible assets. Changes to estimated useful lives would affect the amount of depreciation and amortization recorded in the consolidated statements of operations. During the three months ended June 30, 2017, we determined that certain intangible assets related to technology within the Animal Health segment were impaired, based on changes to future product sales assumptions, and recorded an impairment charge of $713 as a component of selling, general and administrative expenses in our consolidated statements of operations. There were no significant asset impairments or changes in estimated remaining useful lives of our long-lived or amortizable intangible assets in the periods included in the consolidated financial statements prior to 2017. We periodically review our indefinite-lived intangible assets associated with acquired IPR&D for impairment and assess whether significant events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. We recognize an impairment loss when the carrying amount of an asset exceeds the anticipated future discounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss is the excess of the asset’s carrying value over its fair value. During the fourth quarter of each year, or more frequently if impairment indicators exist, we perform an annual impairment assessment. During the three months ended June 30, 2017, we determined that certain IPR&D within the Animal Health segment was impaired, based on changes to future product sales assumptions, and recorded an impairment charge of $1,579 as a component of selling, general and administrative expenses in our consolidated statements of operations. We did not record any impairment charges related to indefinite-lived intangible assets in 2016 and 2015. Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination. We assess goodwill for impairment annually during our fourth quarter, or more frequently if impairment indicators exist. Impairment exists when the carrying amount of goodwill exceeds its implied fair value. We may elect to assess our goodwill for impairment using a qualitative or a quantitative approach, to determine whether it is more likely than not that the fair value of goodwill is greater than its carrying value. During the three months ended June 30, 2017, we tested goodwill using a quantitative approach, which involved estimating fair values of reporting units using the discounted cash flow method. We determined goodwill was not impaired. We have not recorded any goodwill impairment charges in the periods included in the consolidated financial statements. |
Foreign Currency Translation | Foreign Currency Translation We generally use local currency as the functional currency to measure the financial position and results of operations of each of our international subsidiaries. We translate assets and liabilities of these operations at the exchange rates in effect at the balance sheet date. We translate income statement accounts at the average rates of exchange prevailing during the period. Translation adjustments that arise from the use of differing exchange rates from period to period are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Certain of our Israeli operations have designated the U.S. dollar as their functional currency. Gains and losses arising from remeasurement of local currency accounts into U.S. dollars are included in determining net income. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and the changes in: (i) the fair value of derivative instruments that qualify for hedge accounting; (ii) foreign currency translation adjustments; (iii) unrecognized net pension gains (losses); and (iv) the related (provision) benefit for income taxes. |
Derivative Financial Instruments | Derivative Financial Instruments We record all derivative financial instruments on the consolidated balance sheets at fair value. Changes in the fair value of derivatives are recorded in results of operations or accumulated other comprehensive income (loss), depending on whether a derivative is designated and effective as part of a hedge transaction and, if so, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income (loss) are included in the results of operations in the periods in which operations are affected by the underlying hedged item. From time to time, we use certain derivative instruments to mitigate the risk associated with certain economic factors, such as exchange rates and interest rates, which may potentially affect our future cash flows. As of June 30, 2017, we used foreign currency option contracts to mitigate certain exposures related to changes in foreign currency exchange rates, and as a means of hedging forecasted inventory purchases. In July 2017, we entered into an interest rate swap agreement on $150 million of notional principal. To qualify a derivative as a hedge, we document the nature and relationships between hedging instruments and hedged items, the prospective effectiveness of the hedging instrument as well as the ultimate effectiveness, the risk-management objectives, the strategies for undertaking the various hedge transactions and the methods of assessing hedge effectiveness. We do not engage in trading or other speculative uses of financial instruments. |
Environmental Liabilities | Environmental Liabilities Expenditures for ongoing compliance with environmental regulations are expensed or capitalized as appropriate. We capitalize expenditures made to extend the useful life or productive capacity of an asset, including expenditures that prevent future environmental contamination. Other expenditures are expensed as incurred and are recorded in selling, general and administrative expenses in the consolidated statements of operations. We record the expense and related liability in the period an environmental assessment indicates remedial efforts are probable and the costs can be reasonably estimated. Estimates of the liability are based upon currently available facts, existing technology and presently enacted laws and regulations taking into consideration the likely effects of inflation and other societal and economic factors. All available evidence is considered, including prior experience in remediation of contaminated sites, other companies’ experiences and data released by the U.S. Environmental Protection Agency and other organizations. The estimated liabilities are not discounted. We record anticipated recoveries under existing insurance contracts if probable. |
Income Taxes | Income Taxes The provision for income taxes includes U.S. federal, state, and foreign income taxes and foreign withholding taxes. Our annual effective income tax rate is determined based on our income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate and the tax effects of items treated differently for tax purposes than for financial reporting purposes. Tax law requires certain items be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible in our tax return, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences give rise to deferred tax assets and liabilities. Deferred tax assets generally represent the tax effect of items that can be used as a tax deduction or credit in future years for which we have already recorded the tax benefit in our income statement. Deferred tax liabilities generally represent the tax effect of items recorded as tax expense in our income statement for which payment has been deferred, the tax effect of expenditures for which a deduction has already been taken in our tax return but has not yet been recognized in our income statement, and the tax effect of assets recorded at fair value in business combinations for which there was no corresponding tax basis adjustment. Significant judgment is required in determining our income tax provision and in evaluating our tax positions. The recognition and measurement of a tax position is based on management’s best judgment given the facts, circumstances and information available at the reporting date. Inherent in determining our annual effective income tax rate are judgments regarding business plans, planning opportunities and expectations about future outcomes. Realization of certain deferred tax assets, primarily net operating loss carryforwards, is dependent upon generating sufficient future taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. We establish valuation allowances for deferred tax assets when the amount of expected future taxable income is not likely to support the use of the deduction or credit, and release these allowances when it is more likely than not that these deductions or credits will be used. We operate in multiple jurisdictions with complex tax policy and regulatory environments. In certain of these jurisdictions, we may take tax positions that management believes are supportable, but are potentially subject to successful challenge by the applicable taxing authority. We evaluate our tax positions and establish liabilities in accordance with the applicable accounting guidance on uncertainty in income taxes. We review these tax uncertainties in light of changing facts and circumstances, such as the progress of tax audits, and adjust them accordingly. Because there are a number of estimates and assumptions inherent in calculating the various components of our income tax provision, future events such as changes in tax legislation, the geographic mix of earnings, completion of tax audits or earnings repatriation plans could have an effect on those estimates and our effective income tax rate. |
Advertising | Advertising Advertising and marketing costs are expensed as incurred and are reflected in selling, general and administrative expenses. |
Research and Development Expenditures | Research and Development Expenditures Research and development expenditures are expensed as incurred and are recorded in selling, general and administrative expenses in the consolidated statements of operations. Most of our manufacturing facilities have chemists and technicians on staff involved in product development, quality assurance, quality control and providing technical services to customers. Research, development and technical service efforts are conducted at various facilities. Our animal health research and development activities relate to: fermentation development and microbiological strain improvement; vaccine development; chemical synthesis and formulation development; nutritional specialties development; and ethanol-related products. |
Stock-Based Compensation | Stock-Based Compensation All stock-based compensation to employees, including grants of stock options, is expensed over the requisite service period based on the grant date fair value of the awards. We determine the fair value of stock-based awards using the Black-Scholes option-pricing model that uses both historical and current market data to estimate the fair value. This method incorporates various assumptions such as the risk-free interest rate, expected volatility, expected dividend yield and expected life of the options. |
Net Income per Share and Weighted Average Shares | Net Income per Share and Weighted Average Shares Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period after giving effect to potential dilutive common shares resulting from the assumed exercise of stock options. For the years ended June 30, 2017, 2016 and 2015, all common share equivalents were included in the calculation of diluted net income per share. For the Years Ended June 30 2017 2016 2015 Net income $ 64,615 $ 82,728 $ 60,280 Weighted average number of shares–basic 39,524 39,254 38,969 Dilutive effect of stock options 518 708 846 Weighted average number of shares–diluted 40,042 39,962 39,815 Net income per share basic $ 1.63 $ 2.11 $ 1.55 diluted $ 1.61 $ 2.07 $ 1.51 |
New Accounting Standards | New Accounting Standards ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, amends Compensation—Stock Compensation (Topic 718) ASU 2016-02, Leases (Topic 842) ASU 2015-11, Inventory (Topic 330) ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30) ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40) ASU 2014-09, Revenue from Contracts with Customers (Topic 606) |
Summary of Significant Accoun25
Summary of Significant Accounting Policies and New Accounting Standards (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Net Income per Share and Weighted Average Shares | For the Years Ended June 30 2017 2016 2015 Net income $ 64,615 $ 82,728 $ 60,280 Weighted average number of shares–basic 39,524 39,254 38,969 Dilutive effect of stock options 518 708 846 Weighted average number of shares–diluted 40,042 39,962 39,815 Net income per share basic $ 1.63 $ 2.11 $ 1.55 diluted $ 1.61 $ 2.07 $ 1.51 |
Statements of Operations-Addi26
Statements of Operations-Additional Information (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Supplemental Income Statement Elements [Abstract] | |
Schedule of additional information of statements of operations | For the Years Ended June 30 2017 2016 2015 Interest expense, net Term loan $ 11,482 $ 11,631 $ 11,717 Revolving credit facility 2,897 2,257 918 Amortization of debt issuance costs and debt discount 1,015 989 967 Acquisition-related accrued interest 1,373 1,476 613 Other 105 495 339 Interest expense 16,872 16,848 14,554 Interest (income) (1,966 ) (256 ) (249 ) $ 14,906 $ 16,592 $ 14,305 Depreciation and amortization Depreciation of property, plant and equipment $ 19,916 $ 17,659 $ 16,813 Amortization of intangible assets 5,950 5,559 4,560 Amortization of other assets 135 234 231 $ 26,001 $ 23,452 $ 21,604 For the Years Ended June 30 2017 2016 2015 Research and development expenditures $ 9,442 $ 11,029 $ 9,511 |
Balance Sheets-Additional Inf27
Balance Sheets-Additional Information (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Balance Sheets Additional Information [Abstract] | |
Schedule of additional information of balance sheets | As of June 30 2017 2016 Accounts receivable, net Trade accounts receivable $ 132,275 $ 128,743 Allowance for doubtful accounts (6,428 ) (4,953 ) $ 125,847 $ 123,790 As of June 30 2017 2016 2015 Allowance for doubtful accounts Balance at beginning of period $ 4,953 $ 3,378 $ 1,235 Provision for bad debts 1,412 1,774 2,587 Effect of changes in exchange rates 159 (132 ) (218 ) Bad debt write-offs (recovery) (96 ) (67 ) (226 ) Balance at end of period $ 6,428 $ 4,953 $ 3,378 As of June 30 2017 2016 Inventories Raw materials $ 54,861 $ 51,369 Work-in-process 12,402 8,074 Finished goods 93,970 108,248 $ 161,233 $ 167,691 As of June 30 2017 2016 Property, plant and equipment, net Land $ 9,584 $ 9,612 Buildings and improvements 65,958 64,265 Machinery and equipment 212,589 196,480 288,131 270,357 Accumulated depreciation (160,780 ) (143,034 ) $ 127,351 $ 127,323 As of June 30 Weighted- (Years) 2017 2016 Intangibles, net Cost Medicated feed additive product registrations 10 $ 10,400 $ 11,744 Amprolium international marketing rights 10 4,292 4,292 Customer relationships 13 10,616 10,606 Technology 13 67,907 66,960 Distribution agreements 4 3,222 3,275 Trade names, trademarks and other 5 2,740 2,740 In-process research and development 1,800 1,579 100,977 101,196 Accumulated amortization Medicated feed additive product registrations (10,400 ) (10,846 ) Amprolium international marketing rights (4,292 ) (4,292 ) Customer relationships (6,995 ) (6,303 ) Technology (18,776 ) (13,877 ) Distribution agreements (3,222 ) (3,275 ) Trade names, trademarks and other (2,690 ) (2,508 ) (46,375 ) (41,101 ) $ 54,602 $ 60,095 As of June 30 2017 2016 Goodwill roll-forward Balance at beginning of period $ 21,121 $ 12,613 Purchase price allocation correction 2,861 — MVP acquisition — 8,508 Balance at end of period $ 23,982 $ 21,121 As of June 30 2017 2016 Other assets Acquisition-related note receivable $ 5,000 $ 5,000 Equity method investments 4,235 4,580 Insurance investments 5,097 4,833 Deferred financing fees 2,552 1,064 Deferred income taxes 23,269 28,019 Deposits 7,074 5,992 Other 6,570 6,977 $ 53,797 $ 56,465 As of June 30 2017 2016 Accrued expenses and other current liabilities Employee related $ 26,553 $ 21,712 Commissions and rebates 6,443 3,722 Insurance related 1,515 1,780 Professional fees 3,823 3,573 Income and other taxes 3,035 1,910 Contingent consideration on acquisitions — 1,250 Other 11,283 11,756 $ 52,652 $ 45,703 As of June 30 2017 2016 Other liabilities U.S. pension plan $ 6,150 $ 21,371 International retirement plans 5,257 5,600 Supplemental retirement benefits, deferred compensation and other 9,783 8,984 Long term and deferred income taxes 8,946 8,205 Contingent consideration on acquisitions 11,751 9,172 Other long term liabilities 7,666 7,981 $ 49,553 $ 61,313 As of June 30 2017 2016 Accumulated other comprehensive income (loss) Derivative instruments $ 2,686 $ 2,655 Foreign currency translation adjustment (43,556 ) (41,904 ) Unrecognized net pension gains (losses) (18,059 ) (30,977 ) (Provision) benefit for income taxes on derivative instruments (1,553 ) (1,548 ) (Provision) benefit for incomes taxes on long-term intercompany investments 8,166 8,166 (Provision) benefit for income taxes on pension gains (losses) (3,121 ) 1,823 $ (55,437 ) $ (61,785 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of acquired assets and liabilities as of the acquisition | Working capital, net $ 4,914 Property, plant and equipment 4,774 Definite-lived intangible assets 28,380 Goodwill 8,508 Net assets acquired $ 46,576 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | As of June 30 2017 2016 Term A Loan due June 2022 $ 250,000 $ — Term B Loan due April 2021 — 284,200 Capitalized lease obligations — 7 250,000 284,207 Unamortized debt issuance costs and debt discount (1,859 ) (3,035 ) 248,141 281,172 Less: current maturities (6,250 ) (2,907 ) $ 241,891 $ 278,265 |
Schedule of aggregate maturities of long term debt | For the Years Ended June 30 2018 $ 6,250 2019 12,500 2020 12,500 2021 18,750 2022 200,000 Total $ 250,000 |
Common Stock, Preferred Stock30
Common Stock, Preferred Stock and Dividends (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of preferred shares and common shares | 2017 2016 2017 2016 As of June 30 Authorized Shares Par value Issued and outstanding shares Preferred stock 16,000,000 16,000,000 $ 0.0001 — — Common stock–Class A 300,000,000 300,000,000 $ 0.0001 19,249,132 18,519,757 Common stock–Class B 30,000,000 30,000,000 $ 0.0001 20,626,836 20,887,811 |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of weighted-average grant-date fair value of the options | Option Weighted- Outstanding, June 30, 2016 1,046,040 $ 11.83 Exercised (468,400 ) $ 11.83 Outstanding, June 30, 2017 577,640 $ 11.83 Exercisable, June 30, 2017 577,640 $ 11.83 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of changes in projected benefit obligation, plan assets and the funded status | For the Years Ended June 30 2017 2016 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 75,664 $ 62,605 Service cost 845 2,939 Interest cost 2,045 2,893 Benefits paid (1,521 ) (1,271 ) Actuarial (gain) loss (1,448 ) 8,498 Liability (gain) loss due to curtailment (6,822 ) — Settlement payments (5,503 ) — Projected benefit obligation at end of year $ 63,260 $ 75,664 For the Years Ended June 30 2017 2016 Change in plan assets Fair value of plan assets at beginning of year $ 54,293 $ 44,032 Actual return on plan assets 5,647 (1,202 ) Employer contributions 4,194 12,734 Benefits paid (1,521 ) (1,271 ) Settlement payments (5,503 ) — Fair value of plan assets at end of year $ 57,110 $ 54,293 Funded status at end of year $ (6,150 ) $ (21,371 ) |
Schedule of accumulated other comprehensive (income) loss related to the pension plan | For the Years Ended June 30 2017 2016 Accumulated Other Comprehensive (Income) Loss Related to Pension Plan Balance at beginning of period $ 30,977 $ 19,884 Amortization of net actuarial loss and prior service costs (9,213 ) (1,784 ) Current period net actuarial (gain) loss (3,705 ) 12,877 Net change (12,918 ) 11,093 Balance at end of period $ 18,059 $ 30,977 |
Schedule of net periodic pension expense | For the Years Ended June 30 2017 2016 2015 Service cost–benefits earned during the year $ 845 $ 2,939 $ 2,954 Interest cost on benefit obligation 2,045 2,893 2,618 Expected return on plan assets (3,389 ) (3,177 ) (2,828 ) Amortization of net actuarial loss and prior service costs 672 1,784 1,405 Curtailment expense 16 — — Settlement expense 1,702 — — Net pension expense $ 1,891 $ 4,439 $ 4,149 |
Schedule of significant actuarial assumptions | For the Years Ended June 30 2017 2016 2015 Discount rate for service cost 4.0 % 4.6 % 4.5 % Discount rate for interest cost 3.2 % 4.6 % 4.5 % Expected rate of return on plan assets 6.1 % 6.1 % 6.7 % Discount rate for year-end benefit obligation 3.9 % 3.9 % 4.6 % |
Schedule of estimated future benefit payments, including benefits attributable to future service | For the Years Ended June 30 2018 $ 2,156 2019 2,388 2020 2,612 2021 2,815 2022 3,014 2023–2027 17,073 |
Schedule of weighted-average asset allocation of plan assets | Target Percentage of Plan Assets For the years ended June 30 2018 2017 2016 Debt securities 48%–68% 33 % 19 % Equity securities 20%–40% 38 % 43 % Global asset allocation/risk parity (1) 2%–22% 17 % 26 % Other 0%–10% 12 % 12 % (1) The global asset allocation/risk parity category consists of a variety of asset classes including, but not limited to, global bonds, global equities, real estate and commodities. |
Schedule of fair values of the Company's plan assets by asset category | Fair Value Measurements Using As of June 30, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 3,023 $ — $ — $ 3,023 Common-collective funds Global large cap equities — 12,385 7,132 19,517 Fixed income securities — 16,850 1,136 17,986 Global asset allocations/risk parity — 5,822 — 5,822 Mutual funds Global Equities 1,972 — — 1,972 Fixed income securities 1,099 — — 1,099 Global asset allocations/risk parity — — — — Other Global asset allocations/risk parity — — 4,103 4,103 Other — — 3,588 3,588 $ 6,094 $ 35,057 $ 15,959 $ 57,110 Fair Value Measurements Using As of June 30, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 713 $ — $ — $ 713 Common-collective funds Global large cap equities — 11,963 6,596 18,559 Fixed income securities — 7,583 — 7,583 Global asset allocations/risk parity — 4,878 — 4,878 Mutual funds Global Equities 4,611 — — 4,611 Fixed income securities 1,366 — — 1,366 Global asset allocations/risk parity 2,667 — — 2,667 Other Fixed income securities — — 1,434 1,434 Global asset allocations/risk parity — — 6,554 6,554 Other — — 5,929 5,929 $ 9,357 $ 24,424 $ 20,513 $ 54,294 |
Schedule of summary of the changes in the fair value of level 3 assets | Change in Fair Value Level 3 assets 2017 2016 Balance at beginning of period $ 20,513 $ 8,989 Redemptions (9,353 ) (3,656 ) Purchases 2,533 15,695 Change in fair value 2,266 (515 ) Balance at end of period $ 15,959 $ 20,513 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before income taxes | For the Years Ended June 30 2017 2016 2015 Domestic $ 18,015 $ 2,027 $ 15,937 Foreign 62,528 74,734 62,826 Income (loss) before income taxes $ 80,543 $ 76,761 $ 78,763 |
Schedule of components of the provision for income taxes | For the Years Ended June 30 2017 2016 2015 Current provision (benefit): Federal $ 383 $ (2,889 ) $ (468 ) State and local 724 (474 ) (48 ) Foreign 14,839 20,168 13,868 Total current provision 15,946 16,805 13,352 Deferred provision (benefit): Federal 4,675 (2,985 ) 6,157 State and local 251 911 1,311 Foreign (833 ) (989 ) 5,933 Change in valuation allowance–domestic — (19,588 ) (7,468 ) Change in valuation allowance–foreign (4,111 ) (121 ) (802 ) Total deferred provision (18 ) (22,772 ) 5,131 Provision (benefit) for income taxes $ 15,928 $ (5,967 ) $ 18,483 |
Schedule of reconciliations of the Federal statutory rate to the Company's effective tax rate | For the Years Ended June 30 2017 2016 2015 Federal income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal benefit 0.9 0.2 0.2 Change in federal valuation allowance — (27.8 ) (7.8 ) Change in foreign valuation allowance (5.1 ) — — Foreign income tax rates (6.8 ) (5.5 ) (2.2 ) Foreign withholding tax 0.1 0.1 0.3 Foreign incentive tax rates (3.1 ) (4.5 ) (4.1 ) Domestic tax on foreign income 2.7 2.7 0.9 Change in liability for uncertain tax positions 1.6 (4.9 ) 1.5 Permanent items (0.9 ) 1.5 (0.6 ) Exercise of employee stock options (3.8 ) (4.6 ) — Other (0.8 ) — 0.3 Effective tax rate 19.8 % (7.8 )% 23.5 % |
Schedule of the tax effects of significant temporary differences that comprise deferred tax assets and liabilities | As of June 30 2017 2016 Deferred tax assets: Employee related accruals $ 7,146 $ 12,603 Inventory 4,851 2,573 Environmental remediation 2,280 2,208 Net operating loss carry forwards–domestic 4,893 13,768 Net operating loss carry forwards–foreign 4,023 4,346 Other 11,139 7,566 34,332 43,064 Valuation allowance (438 ) (4,614 ) 33,894 38,450 Deferred tax liabilities: Property, plant and equipment and intangible assets (9,671 ) (9,725 ) Other (2,004 ) (1,956 ) (11,675 ) (11,681 ) Net deferred tax asset $ 22,219 $ 26,769 |
Schedule of deferred taxes included in the line items of the consolidated balance sheets | As of June 30 2017 2016 Other assets $ 23,269 $ 28,019 Other liabilities (1,050 ) (1,250 ) $ 22,219 $ 26,769 |
Schedule of the valuation allowance for deferred tax assets | As of June 30 2017 2016 2015 Balance at beginning of period $ 4,614 $ 26,622 $ 32,892 Provision for income taxes (4,111 ) (19,709 ) (6,270 ) Net operating loss utilization (65 ) (2,299 ) — Balance at end of period $ 438 $ 4,614 $ 26,622 |
Schedule of the reconciliation of the beginning and ending amount of unrecognized tax benefits | As of June 30 2017 2016 2015 Unrecognized tax benefits–beginning of period $ 4,946 $ 8,078 $ 7,420 Tax position changes–prior periods — 188 (24 ) Tax position changes–current period 1,490 472 1,945 Lapse of statute of limitations (391 ) (3,700 ) (907 ) Translation 508 (92 ) (356 ) Unrecognized tax benefits–end of period 6,553 4,946 8,078 Interest and penalties–end of period 449 308 1,326 Total liabilities related to uncertain tax $ 7,002 $ 5,254 $ 9,404 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease commitments | For the Years Ended June 30 Non-cancellable operating leases 2018 $ 5,363 2019 4,584 2020 3,972 2021 3,430 2022 2,833 Thereafter 2,607 Total minimum lease payments $ 22,789 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of significant outstanding derivatives employed to manage market risk and designated as cash flow hedges | Instrument Hedge Notional Fair value as of June 30, 2017 2016 Options Brazilian Real calls R$ 39,000 $ 2,686 $ 3,027 Options Brazilian Real puts R$ 39,000 $ — $ (372 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of derivative instruments based upon pricing models | As of June 30 2017 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivatives asset $ — $ 2,686 $ — $ — $ 2,655 $ — Contingent consideration on acquisitions $ — $ — $ (7,644 ) $ — $ — $ (6,745 ) |
Schedule of changes in the fair value of Level 3 assets | 2017 2016 Balance, June 30, 2016 $ (6,745 ) $ (5,465 ) Adjustment to contingent consideration 404 — Acquisition-related accrued interest (1,373 ) (1,476 ) Payment 70 196 Balance, June 30, 2017 $ (7,644 ) $ (6,745 ) |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of information regarding reportable segments | For the Years Ended June 30 2017 2016 2015 Net sales MFAs and other $ 321,430 $ 339,916 $ 335,735 Nutritional Specialties 111,282 94,084 81,702 Vaccines 65,033 52,140 53,363 Animal Health 497,745 486,140 470,800 Mineral Nutrition 218,298 216,685 227,102 Performance Products 48,238 48,701 50,689 Total segments $ 764,281 $ 751,526 $ 748,591 Depreciation and amortization Animal Health $ 20,132 $ 17,149 $ 15,430 Mineral Nutrition 2,332 2,467 2,468 Performance Products 939 807 577 Total segments $ 23,403 $ 20,423 $ 18,475 Adjusted EBITDA Animal Health $ 130,261 $ 127,442 $ 120,259 Mineral Nutrition 17,426 14,971 14,429 Performance Products 2,057 970 2,646 Total segments $ 149,744 $ 143,383 $ 137,334 Reconciliation of income before income taxes to Adjusted EBITDA Income before income taxes $ 80,543 $ 76,761 $ 78,763 Interest expense, net 14,906 16,592 14,305 Depreciation and amortization–Total 23,403 20,423 18,475 Depreciation and amortization–Corporate 2,598 3,029 3,129 Corporate costs 29,625 29,323 27,315 Acquisition-related cost of goods sold — 2,566 — Acquisition-related accrued compensation 1,680 1,680 747 Acquisition-related transaction costs 1,274 618 — Acquisition-related other, net (972 ) — — Pension settlement cost 1,702 — — Gain on insurance settlement (7,500 ) — — Foreign currency (gains) losses, net (113 ) (7,609 ) (5,400 ) Loss on extinguishment of debt 2,598 — — Adjusted EBITDA–Total segments $ 149,744 $ 143,383 $ 137,334 As of June 30 2017 2016 Identifiable assets Animal Health $ 442,521 $ 444,751 Mineral Nutrition 55,184 57,939 Performance Products 23,681 21,557 Total segments 521,386 524,247 Corporate 102,011 83,588 Total $ 623,397 $ 607,835 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Segments, Geographical Areas [Abstract] | |
Schedule of information about geographic operations | For the Years Ended June 30 2017 2016 2015 Net sales United States $ 484,148 $ 473,247 $ 475,942 Israel 92,752 89,999 93,459 Latin America and Canada 96,687 105,667 99,578 Europe and Africa 40,211 36,177 36,397 Asia/Pacific 50,483 46,436 43,215 $ 764,281 $ 751,526 $ 748,591 |
Schedule of geographic information regarding property, plant and equipment, net | As of June 30 2017 2016 Property, plant and equipment, net United States $ 56,459 $ 56,735 Israel 47,027 46,706 Brazil 22,793 22,720 Other 1,072 1,162 $ 127,351 $ 127,323 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies and New Accounting Standards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accounting Policies [Abstract] | |||
Net income | $ 64,615 | $ 82,728 | $ 60,280 |
Weighted average number of shares - basic | 39,524 | 39,254 | 38,969 |
Dilutive effect of stock options | 518 | 708 | 846 |
Weighted average number of shares - diluted | 40,042 | 39,962 | 39,815 |
Net income per share | |||
basic (in dollars per share) | $ 1.63 | $ 2.11 | $ 1.55 |
diluted (in dollars per share) | $ 1.61 | $ 2.07 | $ 1.51 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies and New Accounting Standards (Detail Textuals) - Accounts Receivable - Customer | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Significant Accounting Policies And New Accounting Standards [Line Items] | ||
Number of largest customers | 10 | 10 |
Percentage of accounts receivable | 21.00% | 27.00% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies and New Accounting Standards (Detail Textuals 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jul. 31, 2017 | Jun. 30, 2016 | |
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Depreciation methods | straight-line method | |||
Impairment of intangible assets related to technology | $ 713 | |||
Impairment of intangible assets related to IPR&D | 1,579 | |||
Debt issuance costs | $ 2,538 | |||
Interest Rate Swap | ||||
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Derivative, Notional Amount | $ 150,000 | $ 150,000 | ||
Subsequent Event | Interest Rate Swap | ||||
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Derivative, Notional Amount | $ 150,000 | |||
Building and Improvements | Minimum | ||||
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Estimated useful lives | 2 years | |||
Building and Improvements | Maximum | ||||
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Estimated useful lives | 30 years | |||
Machinery and Equipment | Minimum | ||||
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Estimated useful lives | 1 year | |||
Machinery and Equipment | Maximum | ||||
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Estimated useful lives | 10 years | |||
Computer Software | ||||
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Amortization method | straight-line basis | |||
Computer Software | Minimum | ||||
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Estimated useful lives | 3 years | |||
Computer Software | Maximum | ||||
Significant Accounting Policies And New Accounting Standards [Line Items] | ||||
Estimated useful lives | 7 years |
Statements of Operations-Addi42
Statements of Operations-Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest expense, net | |||
Amortization of debt issuance costs and debt discount | $ 1,015 | $ 989 | $ 967 |
Acquisition-related accrued interest | 1,373 | 1,476 | 613 |
Other | 105 | 495 | 339 |
Interest expense | 16,872 | 16,848 | 14,554 |
Interest (income) | (1,966) | (256) | (249) |
Interest expense, net | 14,906 | 16,592 | 14,305 |
Depreciation and amortization | |||
Depreciation of property, plant and equipment | 19,916 | 17,659 | 16,813 |
Amortization of intangible assets | 5,950 | 5,559 | 4,560 |
Amortization of other assets | 135 | 234 | 231 |
Depreciation and amortization | 26,001 | 23,452 | 21,604 |
Research and development expenditures | 9,442 | 11,029 | 9,511 |
Term Loan | |||
Interest expense, net | |||
Interest expense | 11,482 | 11,631 | 11,717 |
Revolving credit facility | |||
Interest expense, net | |||
Interest expense | $ 2,897 | $ 2,257 | $ 918 |
Statements of Operations-Addi43
Statements of Operations-Additional Information (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statements Of Operations Additional Information [Abstract] | |||
Amortization of capitalized software costs | $ 2,199 | $ 2,915 | $ 2,905 |
Expected amortization of intangibles, 2018 | 5,521 | ||
Expected amortization of intangibles, 2019 | 5,522 | ||
Expected amortization of intangibles, 2020 | 5,397 | ||
Expected amortization of intangibles, 2021 | 5,023 | ||
Expected amortization of intangibles, 2022 | 5,025 | ||
Expected amortization of intangibles, thereafter | $ 26,314 |
Balance Sheets-Additional Inf44
Balance Sheets-Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounts receivable, net | |||||
Trade accounts receivable | $ 132,275 | $ 128,743 | |||
Allowance for doubtful accounts | $ (4,953) | $ (3,378) | $ (3,378) | (6,428) | (4,953) |
Trade accounts receivable, net | 125,847 | 123,790 | |||
Allowance for doubtful accounts | |||||
Balance at beginning of period | 4,953 | 3,378 | 1,235 | ||
Provision for bad debts | 1,412 | 1,774 | 2,587 | ||
Effect of changes in exchange rates | 159 | (132) | (218) | ||
Bad debt write-offs (recovery) | (96) | (67) | (226) | ||
Balance at end of period | $ 6,428 | $ 4,953 | $ 3,378 | ||
Inventories, net | |||||
Raw materials | 54,861 | 51,369 | |||
Work-in-process | 12,402 | 8,074 | |||
Finished goods | 93,970 | 108,248 | |||
Inventory, net | 161,233 | 167,691 | |||
Property, plant and equipment, net | |||||
Property, plant and equipment, gross | 288,131 | 270,357 | |||
Accumulated depreciation | (160,780) | (143,034) | |||
Property, plant and equipment, net | 127,351 | 127,323 | |||
Land | |||||
Property, plant and equipment, net | |||||
Property, plant and equipment, gross | 9,584 | 9,612 | |||
Buildings and improvements | |||||
Property, plant and equipment, net | |||||
Property, plant and equipment, gross | 65,958 | 64,265 | |||
Machinery and equipment | |||||
Property, plant and equipment, net | |||||
Property, plant and equipment, gross | $ 212,589 | $ 196,480 |
Balance Sheets-Additional Inf45
Balance Sheets-Additional Information (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Intangibles, net Cost | ||
Intangibles | $ 100,977 | $ 101,196 |
Accumulated amortization | (46,375) | (41,101) |
Intangibles, net | 54,602 | 60,095 |
Goodwill roll-forward | ||
Balance at beginning of period | 21,121 | 12,613 |
Purchase price allocation correction | 2,861 | |
MVP acquisition | 8,508 | |
Balance at end of period | 23,982 | 21,121 |
Other assets | ||
Acquisition-related note receivable | 5,000 | 5,000 |
Equity method investments | 4,235 | 4,580 |
Insurance investments | 5,097 | 4,833 |
Deferred financing fees | 2,552 | 1,064 |
Deferred income taxes | 23,269 | 28,019 |
Deposits | 7,074 | 5,992 |
Other | 6,570 | 6,977 |
Other assets, total | 53,797 | 56,465 |
Accrued expenses and other current liabilities | ||
Employee related | 26,553 | 21,712 |
Commissions and rebates | 6,443 | 3,722 |
Insurance related | 1,515 | 1,780 |
Professional fees | 3,823 | 3,573 |
Income and other taxes | 3,035 | 1,910 |
Contingent consideration on acquisitions | 1,250 | |
Other | 11,283 | 11,756 |
Accrued expenses and other current liabilities, total | 52,652 | 45,703 |
Other liabilities | ||
U.S. pension plan | 6,150 | 21,371 |
International retirement plans | 5,257 | 5,600 |
Supplemental retirement benefits, deferred compensation and other | 9,783 | 8,984 |
Long term and deferred income taxes | 8,946 | 8,205 |
Contingent consideration on acquisitions | 11,751 | 9,172 |
Other long term liabilities | 7,666 | 7,981 |
Other liabilities, total | 49,553 | 61,313 |
Accumulated other comprehensive income (loss) | ||
Derivative instruments | 2,686 | 2,655 |
Foreign currency translation adjustment | (43,556) | (41,904) |
Unrecognized net pension gains (losses) | (18,059) | (30,977) |
(Provision) benefit for income taxes on derivative instruments | (1,553) | (1,548) |
(Provision) benefit for incomes taxes on long-term intercompany investments | 8,166 | 8,166 |
(Provision) benefit for income taxes on pension gains (losses) | (3,121) | 1,823 |
Accumulated other comprehensive income (loss) | (55,437) | (61,785) |
Medicated feed additive product registrations | ||
Intangibles, net Cost | ||
Intangibles | 10,400 | 11,744 |
Accumulated amortization | $ (10,400) | (10,846) |
Weighted-Average Useful Life (Years) | 10 years | |
Amprolium international marketing rights | ||
Intangibles, net Cost | ||
Intangibles | $ 4,292 | 4,292 |
Accumulated amortization | $ (4,292) | (4,292) |
Weighted-Average Useful Life (Years) | 10 years | |
Customer relationships | ||
Intangibles, net Cost | ||
Intangibles | $ 10,616 | 10,606 |
Accumulated amortization | $ (6,995) | (6,303) |
Weighted-Average Useful Life (Years) | 13 years | |
Technology | ||
Intangibles, net Cost | ||
Intangibles | $ 67,907 | 66,960 |
Accumulated amortization | $ (18,776) | (13,877) |
Weighted-Average Useful Life (Years) | 13 years | |
Distribution agreements | ||
Intangibles, net Cost | ||
Intangibles | $ 3,222 | 3,275 |
Accumulated amortization | $ (3,222) | (3,275) |
Weighted-Average Useful Life (Years) | 4 years | |
Trade names, trademarks and other | ||
Intangibles, net Cost | ||
Intangibles | $ 2,740 | 2,740 |
Accumulated amortization | $ (2,690) | (2,508) |
Weighted-Average Useful Life (Years) | 5 years | |
In-process research and development | ||
Intangibles, net Cost | ||
Intangibles | $ 1,800 | $ 1,579 |
Balance Sheets-Additional Inf46
Balance Sheets-Additional Information (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Additional Information Of Balance Sheet [Line Items] | ||
Equity Method Investments | $ 4,235 | $ 4,580 |
Accumulated depreciation | 3,558 | 5,180 |
Construction-in-progress | 2,690 | 5,595 |
Deferred consideration on acquisitions | 1,250 | |
Understated amount of goodwill and a liability for deferred consideration on acquisitions | 2,861 | |
Accrued compensation related to service of a key employee | 4,107 | |
Animal Health | ||
Additional Information Of Balance Sheet [Line Items] | ||
Equity Method Investments | $ 3,719 | $ 4,076 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | Jan. 31, 2016 | Jun. 30, 2015 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Goodwill | $ 23,982 | $ 21,121 | $ 12,613 | |
MVP | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Working capital, net | $ 4,914 | |||
Property, plant and equipment | 4,774 | |||
Definite-lived intangible assets | 28,380 | |||
Goodwill | 8,508 | |||
Net assets acquired | $ 46,576 |
Acquisitions (Detail Textuals)
Acquisitions (Detail Textuals) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | |||
Initial cash payment | $ 46,576 | $ 10,377 | |
MVP | |||
Business Acquisition [Line Items] | |||
Initial cash payment | $ 46,576 | ||
Transaction expenses | $ 618 | ||
Intangible asset useful life | 15 years |
Debt - Summary of long-term deb
Debt - Summary of long-term debt (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt including current maturities | $ 250,000 | $ 284,207 |
Unamortized debt issuance costs and debt discount | (1,859) | (3,035) |
Long-term debt after unamortized debt discount | 248,141 | 281,172 |
Less: current maturities | 6,250 | 2,907 |
Long-term debt | 241,891 | 278,265 |
Term A Loan due June 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt including current maturities | 250,000 | |
Term B loan due April 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt including current maturities | 284,200 | |
Capitalized lease obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt including current maturities | $ 7 |
Debt - Aggregate maturities of
Debt - Aggregate maturities of long-term debt (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 6,250 | |
2,019 | 12,500 | |
2,020 | 12,500 | |
2,021 | 18,750 | |
2,022 | 200,000 | |
Total | $ 250,000 | $ 284,207 |
Debt (Detail Textuals)
Debt (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||
Loss on extinguishment of debt | $ 2,598 | |
Outstanding borrowings | 65,000 | $ 69,000 |
Proceeds from credit facilities | $ 314,138 | |
Interest Rate Swap | ||
Debt Instrument [Line Items] | ||
Percentage of interest rate | 1.8325% | |
Derivative, notional amount | $ 150,000 | |
Term A Loan | ||
Debt Instrument [Line Items] | ||
Amount of loan | $ 250,000 | |
Applicable interest rates | 3.05% | |
Term B loan | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rates | 4.06% | 4.00% |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Applicable interest rates | 2.97% | |
Outstanding borrowings | $ 5,957 | |
Aggregate available credit facilities | $ 179,043 | |
Weighted-average interest rates | 3.48% | 3.04% |
Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Credit agreement required covenant-earnings to borrowing ratio | 3.00:1.00 | |
Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Credit agreement required covenant-earnings to borrowing ratio | 4.00:1.00 | |
Credit Facility | Israel subsidiaries | ||
Debt Instrument [Line Items] | ||
Aggregate available credit facilities | $ 13,600 | |
Credit Facility | LIBOR | Israel subsidiaries | ||
Debt Instrument [Line Items] | ||
Maturity dates | March 2,018 | |
Percentage of basis spread on variable rate | 2.25% | |
Credit Facility | Prime Rate | Israel subsidiaries | ||
Debt Instrument [Line Items] | ||
Maturity dates | April 2,018 | |
Percentage of basis spread on variable rate | 0.50% | |
Term A Loans And Revolving Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis for effective rate | a Eurodollar rate determined by reference to LIBOR with a term as selected by the Company | |
Credit Agreement | Credit Facility | ||
Debt Instrument [Line Items] | ||
Amount of loan | $ 250,000 | |
Maturity dates | June 29, 2022 | |
Covenant requirement, permitted leverage ratio | a maximum First Lien Net Leverage Ratio of 4.00:1.00 and, (ii) a minimum interest coverage ratio of 3.00;1.00, each calculated on a trailing four-quarter basis | |
Credit Agreement | Credit Facility | Federal Funds Effective Rate | ||
Debt Instrument [Line Items] | ||
Percentage of basis spread on variable rate | 0.50% | |
Credit Agreement | Credit Facility | Base Rate | ||
Debt Instrument [Line Items] | ||
Interest rate, description | 1.00%; 0.75%; and, 0.50% | |
Covenant requirement, permitted leverage ratio | greater than 3.00:1.00; (ii) less than 3.00:1.00 but greater than or equal to 2.25:1.00; or, (iii) less than 2.25:1.00, the Credit Facilities | |
Credit Agreement | Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate, description | 2.00%; 1.75%; and, 1.50% | |
Covenant requirement, permitted leverage ratio | greater than 3.00:1.00; (ii) less than 3.00:1.00 but greater than or equal to 2.25:1.00; or, (iii) less than 2.25:1.00, the Credit Facilities | |
Percentage of basis spread on variable rate | 1.00% | |
Credit Agreement | Term A Loans And Revolving Credit Facility | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis for effective rate | a base rate determined by reference to the highest of (a) the rate as publicly announced from time to time by Bank of America as its "prime rate," (b) the federal funds effective rate plus 0.50% and (c) the LIBOR daily floating rate plus 1.00% |
Common Stock, Preferred Stock52
Common Stock, Preferred Stock and Dividends - Summary of preferred and common shares (Details) - $ / shares | Jun. 30, 2017 | Jun. 30, 2016 |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 16,000,000 | 16,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock-Class A | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 19,249,132 | 18,519,757 |
Common stock, shares outstanding | 19,249,132 | 18,519,757 |
Common stock-Class B | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 20,626,836 | 20,887,811 |
Common stock, shares outstanding | 20,626,836 | 20,887,811 |
Common Stock, Preferred Stock53
Common Stock, Preferred Stock and Dividends (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Class of Stock [Line Items] | |||
Dividends paid | $ 15,827 | $ 15,708 | $ 15,595 |
BFI Co., LLC ("BFI") | |||
Class of Stock [Line Items] | |||
BFI ownership percentage at which the remaining Class B shares would convert to Class A | 15.00% | ||
Class B common stock | |||
Class of Stock [Line Items] | |||
Common stock holder entiltled to vote per share | 10 votes |
Stock Option Plan (Details)
Stock Option Plan (Details) - Stock Option | 12 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Shares | |
Outstanding, June 30, 2016 | shares | 1,046,040 |
Exercised | shares | (468,400) |
Outstanding, June 30, 2017 | shares | 577,640 |
Exercisable, June 30, 2017 | shares | 577,640 |
Weighted- Average Exercise Price Per Share | |
Outstanding, June 30, 2016 | $ / shares | $ 11.83 |
Exercised | $ / shares | 11.83 |
Outstanding, June 30, 2017 | $ / shares | 11.83 |
Exercisable, June 30, 2017 | $ / shares | $ 11.83 |
Stock Option Plan (Detail Textu
Stock Option Plan (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average remaining contractual life | 1 year 8 months 12 days | |
Aggregate intrinsic value | $ 14,568 | |
Stock Option | 2008 Incentive Plan (the "Incentive Plan") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options, stock awards and other incentives authorized amount | 6,630,000 | |
Stock Option | 2008 Incentive Plan (the "Incentive Plan") | Class A common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 5,131,620 |
Related Party Transactions (Det
Related Party Transactions (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Mr. Bendheim | Compensation and benefit for services provided | |||
Related Party Transaction [Line Items] | |||
Aggregate compensation and benefits | $ 1,735 | $ 1,910 | $ 1,927 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in projected benefit obligation, plan assets and funded status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | $ 75,664 | $ 62,605 | |
Service cost | 845 | 2,939 | $ 2,954 |
Interest cost | 2,045 | 2,893 | 2,618 |
Benefits paid | (1,521) | (1,271) | |
Actuarial (gain) loss | (1,448) | 8,498 | |
Liability (gain) loss due to curtailment | (6,822) | ||
Settlement payments | (5,503) | ||
Projected benefit obligation at end of year | 63,260 | 75,664 | 62,605 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 54,293 | 44,032 | |
Actual return on plan assets | 5,647 | (1,202) | |
Employer contributions | 4,194 | 12,734 | |
Benefits paid | (1,521) | (1,271) | |
Settlement payments | (5,503) | ||
Fair value of plan assets at end of year | 57,110 | 54,293 | $ 44,032 |
Funded status at end of year | $ (6,150) | $ (21,371) |
Employee Benefit Plans - Chan58
Employee Benefit Plans - Change in Accumulated Other Comprehensive (Income) Loss (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive (Income) Loss Related to Pension Plan | |||
Balance at beginning of period | $ 30,977 | $ 19,884 | |
Amortization of net actuarial loss and prior service costs | (9,213) | (1,784) | |
Current period net actuarial (gain) loss | (3,705) | 12,877 | |
Net change | (12,918) | 11,093 | $ 3,221 |
Balance at end of period | $ 18,059 | $ 30,977 | $ 19,884 |
Employee Benefit Plans - Net pe
Employee Benefit Plans - Net periodic pension expense (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost-benefits earned during the year | $ 845 | $ 2,939 | $ 2,954 |
Interest cost on benefit obligation | 2,045 | 2,893 | 2,618 |
Expected return on plan assets | (3,389) | (3,177) | (2,828) |
Amortization of net actuarial loss and prior service costs | 672 | 1,784 | 1,405 |
Curtailment expense | 16 | ||
Settlement expense | 1,702 | ||
Net pension expense | $ 1,891 | $ 4,439 | $ 4,149 |
Employee Benefit Plans - Signif
Employee Benefit Plans - Significant actuarial assumptions for plan (Details 3) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate for service cost | 4.00% | 4.60% | 4.50% |
Discount rate for interest cost | 3.20% | 4.60% | 4.50% |
Expected rate of return on plan assets | 6.10% | 6.10% | 6.70% |
Discount rate for year-end benefit obligation | 3.90% | 3.90% | 4.60% |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated future benefit payments including benefits attributable to future service (Details 4) $ in Thousands | Jun. 30, 2017USD ($) |
Compensation and Retirement Disclosure [Abstract] | |
2,018 | $ 2,156 |
2,019 | 2,388 |
2,020 | 2,612 |
2,021 | 2,815 |
2,022 | 3,014 |
2023-2027 | $ 17,073 |
Employee Benefit Plans - Plan's
Employee Benefit Plans - Plan's target asset allocations and weighted average asset allocation of plan assets (Details 5) | Jun. 30, 2017 | Jun. 30, 2016 | |
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 33.00% | 19.00% | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 38.00% | 43.00% | |
Global asset allocation/risk parity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | [1] | 17.00% | 26.00% |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 12.00% | 12.00% | |
Minimum | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for 2018 | 48.00% | ||
Minimum | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for 2018 | 20.00% | ||
Minimum | Global asset allocation/risk parity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for 2018 | [1] | 2.00% | |
Minimum | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for 2018 | 0.00% | ||
Maximum | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for 2018 | 68.00% | ||
Maximum | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for 2018 | 40.00% | ||
Maximum | Global asset allocation/risk parity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for 2018 | [1] | 22.00% | |
Maximum | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for 2018 | 10.00% | ||
[1] | The global asset allocation/risk parity category consists of a variety of asset classes including, but not limited to, global bonds, global equities, real estate and commodities. |
Employee Benefit Plans - Fair v
Employee Benefit Plans - Fair values of plan assets by asset category (Details 6) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | $ 57,110 | $ 54,293 | $ 44,032 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 6,094 | 9,357 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 35,057 | 24,424 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 15,959 | 20,513 | $ 8,989 |
Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 57,110 | 54,294 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 3,023 | 713 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Cash and cash equivalents | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 3,023 | 713 | |
Common-collective funds - Global large cap equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Common-collective funds - Global large cap equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 12,385 | 11,963 | |
Common-collective funds - Global large cap equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 7,132 | 6,596 | |
Common-collective funds - Global large cap equities | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 19,517 | 18,559 | |
Common-collective funds - Fixed income securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Common-collective funds - Fixed income securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 16,850 | 7,583 | |
Common-collective funds - Fixed income securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 1,136 | ||
Common-collective funds - Fixed income securities | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 17,986 | 7,583 | |
Common-collective funds - Global asset allocations/risk parity | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Common-collective funds - Global asset allocations/risk parity | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 5,822 | 4,878 | |
Common-collective funds - Global asset allocations/risk parity | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Common-collective funds - Global asset allocations/risk parity | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 5,822 | 4,878 | |
Mutual funds - Global Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 1,972 | 4,611 | |
Mutual funds - Global Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Mutual funds - Global Equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Mutual funds - Global Equities | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 1,972 | 4,611 | |
Mutual funds - Fixed income securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 1,099 | 1,366 | |
Mutual funds - Fixed income securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Mutual funds - Fixed income securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Mutual funds - Fixed income securities | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 1,099 | 1,366 | |
Mutual funds - Global asset allocations/risk parity | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 2,667 | ||
Mutual funds - Global asset allocations/risk parity | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Mutual funds - Global asset allocations/risk parity | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Mutual funds - Global asset allocations/risk parity | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 2,667 | ||
Other - Fixed income securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Other - Fixed income securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Other - Fixed income securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 1,434 | ||
Other - Fixed income securities | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 1,434 | ||
Other - Global asset allocations/risk parity | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Other - Global asset allocations/risk parity | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Other - Global asset allocations/risk parity | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 4,103 | 6,554 | |
Other - Global asset allocations/risk parity | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 4,103 | 6,554 | |
Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | |||
Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | 3,588 | 5,929 | |
Other | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of plan assets by asset category | $ 3,588 | $ 5,929 |
Employee Benefit Plans - Chan64
Employee Benefit Plans - Change in Fair Value of Level 3 Assets (Details 7) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Change in Fair Value Level 3 assets | ||
Fair value of plan assets at beginning of year | $ 54,293 | $ 44,032 |
Fair value of plan assets at end of year | 57,110 | 54,293 |
Level 3 | ||
Change in Fair Value Level 3 assets | ||
Fair value of plan assets at beginning of year | 20,513 | 8,989 |
Redemptions | (9,353) | (3,656) |
Purchases | 2,533 | 15,695 |
Change in fair value | 2,266 | (515) |
Fair value of plan assets at end of year | $ 15,959 | $ 20,513 |
Employee Benefit Plans (Detail
Employee Benefit Plans (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Curtailment (gain) loss | $ (6,822) | |||
Partial settlement of pension plan | 5,503 | |||
Contribution to pension plan during 2018 | 4,109 | |||
Amortization of unrecognized net actuarial (gain) loss and prior service cost during 2018 | 407 | |||
Minimum par value required for corporate bond to determine discount rate | $ 250,000 | |||
Cash and cash equivalents fair value assumptions input (in dollars per share) | $ 1 | |||
Selling, general and administrative expenses | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Partial settlement of pension plan | $ 1,702 | |||
Domestic noncontributory defined benefit pension plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Curtailment (gain) loss | $ (6,822) |
Employee Benefit Plans (Detai66
Employee Benefit Plans (Detail Textuals 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
401(k) retirement savings plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Description of the basis for determining contributions | matching contribution equal to 100% of the first 1% of an employee's contribution and make a matching contribution equal to 50% of the next 5% of an employee's contribution. Effective January 1, 2014, for domestic employees hired on or after that date andeffective October 1, 2016, for all domestic employees, such employees receive a non-elective Company contribution of 3% of compensation and are eligible to receive an additional discretionary contribution of up to 4% of compensation, depending on the employee's age and years of service, provided that such payments comply with mandatory non-discrimination testing. | ||
Term of vesting in employer contributions | after two years of service | ||
Defined contribution plan, employer contribution amount | $ 4,154 | $ 2,309 | $ 1,583 |
Contribution percentage | 3.00% | ||
Maximum additional discretionary contribution percentage | 4.00% | ||
Supplemental executive retirement benefits, international retirement plans and other employee benefit plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses under plan | $ 4,304 | 5,239 | $ 3,286 |
Supplemental executive retirement benefits, international retirement plans and other employee benefit plans | Other liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and other postretirement benefit plans, liabilities | $ 15,139 | $ 14,898 |
Income Taxes - Income (loss) be
Income Taxes - Income (loss) before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 18,015 | $ 2,027 | $ 15,937 |
Foreign | 62,528 | 74,734 | 62,826 |
Income (loss) before income taxes | $ 80,543 | $ 76,761 | $ 78,763 |
Income Taxes - Components of pr
Income Taxes - Components of provision for income taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Current provision (benefit): | |||
Federal | $ 383 | $ (2,889) | $ (468) |
State and local | 724 | (474) | (48) |
Foreign | 14,839 | 20,168 | 13,868 |
Total current provision | 15,946 | 16,805 | 13,352 |
Deferred provision (benefit): | |||
Federal | 4,675 | (2,985) | 6,157 |
State and local | 251 | 911 | 1,311 |
Foreign | (833) | (989) | 5,933 |
Total deferred provision | (18) | (22,772) | 5,131 |
Provision (benefit) for income taxes | 15,928 | (5,967) | 18,483 |
Domestic | |||
Deferred provision (benefit): | |||
Change in valuation allowance | (19,588) | (7,468) | |
Foreign | |||
Deferred provision (benefit): | |||
Change in valuation allowance | $ (4,111) | $ (121) | $ (802) |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of Federal statutory rate to effective tax rate (Details 2) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Valuation Allowance [Line Items] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal benefit | 0.90% | 0.20% | 0.20% |
Foreign income tax rates | (6.80%) | (5.50%) | (2.20%) |
Foreign withholding tax | 0.10% | 0.10% | 0.30% |
Foreign incentive tax rates | (3.10%) | (4.50%) | (4.10%) |
Domestic tax on foreign income | 2.70% | 2.70% | 0.90% |
Change in liability for uncertain tax positions | 1.60% | (4.90%) | 1.50% |
Permanent items | (0.90%) | 1.50% | (0.60%) |
Exercise of employee stock options | (3.80%) | (4.60%) | |
Other | (0.80%) | 0.30% | |
Effective tax rate | 19.80% | (7.80%) | 23.50% |
Federal | |||
Valuation Allowance [Line Items] | |||
Change in federal valuation allowance | (27.80%) | (7.80%) | |
Foreign | |||
Valuation Allowance [Line Items] | |||
Change in federal valuation allowance | (5.10%) |
Income Taxes - Tax effects of s
Income Taxes - Tax effects of significant temporary differences of deferred tax assets and liabilities (Details 3) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred tax assets: | ||||
Employee related accruals | $ 7,146 | $ 12,603 | ||
Inventory | 4,851 | 2,573 | ||
Environmental remediation | 2,280 | 2,208 | ||
Net operating loss carry forwards-domestic | 4,893 | 13,768 | ||
Net operating loss carry forwards-foreign | 4,023 | 4,346 | ||
Other | 11,139 | 7,566 | ||
Deferred tax assets, gross | 34,332 | 43,064 | ||
Valuation allowance | (438) | (4,614) | $ (26,622) | $ (32,892) |
Deferred tax assets, net of valuation allowance | 33,894 | 38,450 | ||
Deferred tax liabilities: | ||||
Property, plant and equipment and intangible assets | (9,671) | (9,725) | ||
Other | (2,004) | (1,956) | ||
Deferred tax liabilities, net | (11,675) | (11,681) | ||
Net deferred tax asset | $ 22,219 | $ 26,769 |
Income Taxes - Deferred taxes i
Income Taxes - Deferred taxes included in consolidated balance sheets (Details 4) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Net deferred tax asset (liability) | $ 22,219 | $ 26,769 |
Other assets | ||
Net deferred tax asset (liability) | 23,269 | 28,019 |
Other liabilities | ||
Net deferred tax asset (liability) | $ (1,050) | $ (1,250) |
Income Taxes - Valuation allowa
Income Taxes - Valuation allowance for deferred tax assets (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Deferred Tax Assets Valuation Allowance [Roll Forward] | |||
Balance at beginning of period | $ 4,614 | $ 26,622 | $ 32,892 |
Provision for income taxes | (4,111) | (19,709) | (6,270) |
Net operating loss utilization | (65) | (2,299) | |
Balance at end of period | $ 438 | $ 4,614 | $ 26,622 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of unrecognized tax benefits (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits-beginning of period | $ 4,946 | $ 8,078 | $ 7,420 |
Tax position changes-prior periods | 188 | (24) | |
Tax position changes-current period | 1,490 | 472 | 1,945 |
Lapse of statute of limitations | (391) | (3,700) | (907) |
Translation | 508 | (92) | (356) |
Unrecognized tax benefits-end of period | 6,553 | 4,946 | 8,078 |
Interest and penalties-end of period | 449 | 308 | 1,326 |
Total liabilities related to uncertain tax positions | $ 7,002 | $ 5,254 | $ 9,404 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Valuation Allowance [Line Items] | |||
Undistributed earnings of foreign subsidiaries | $ 211,631 | ||
Recognized interest and penalties expense (income) | 116 | $ (980) | $ 66 |
Uncertain tax positions reversal in future period | 300 | ||
Domestic Jurisdiction | |||
Valuation Allowance [Line Items] | |||
Net operating loss carry forwards | 9,191 | ||
State Jurisdiction | |||
Valuation Allowance [Line Items] | |||
Net operating loss carry forwards | 32,555 | ||
Foreign Jurisdiction | |||
Valuation Allowance [Line Items] | |||
Net operating loss carry forwards | $ 11,915 |
Commitments and Contingencies -
Commitments and Contingencies - Future minimum lease commitments (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Non-cancellable operating leases | |
2,018 | $ 5,363 |
2,019 | 4,584 |
2,020 | 3,972 |
2,021 | 3,430 |
2,022 | 2,833 |
Thereafter | 2,607 |
Total minimum lease payments | $ 22,789 |
Commitments and Contingencies76
Commitments and Contingencies (Detail Textuals) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2012PRPs | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Operating leases, rent expense | $ 7,715 | $ 8,131 | $ 7,240 | |
Number of potentially responsible parties | PRPs | 140 | |||
Term of employment and severance agreement | up to 15 months | |||
Insurance settlement | ||||
Commitments And Contingencies [Line Items] | ||||
Gain in selling, general and administrative expenses | $ 7,500 | |||
Current and long-term liabilities | ||||
Commitments And Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies payments | $ 7,211 | $ 7,024 |
Derivatives (Details)
Derivatives (Details) - Options - Cash flow hedges BRL in Thousands, $ in Thousands | Jun. 30, 2017USD ($) | Jun. 30, 2017BRL | Jun. 30, 2016USD ($) |
Brazilian Real calls | |||
Derivative [Line Items] | |||
Notional amount | BRL | BRL 39,000 | ||
Fair value | $ | $ 2,686 | $ 3,027 | |
Brazilian Real puts | |||
Derivative [Line Items] | |||
Notional amount | BRL | BRL 39,000 | ||
Fair value | $ | $ (372) |
Derivatives (Detail Textuals)
Derivatives (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative [Line Items] | ||
Unrecognized gains on derivative instruments recorded in earnings within the next twelve months | $ 1,759 | |
Options | Cash flow hedges | ||
Derivative [Line Items] | ||
Other comprehensive income (loss), unrealized gains (losses) on derivatives | 31 | |
Options | Cash flow hedges | Cost of goods sold | ||
Derivative [Line Items] | ||
Realized gain (losses) on derivative instruments | 1,011 | $ (1,528) |
Options | Cash flow hedges | Other comprehensive income (loss) | ||
Derivative [Line Items] | ||
Unrecognized gains (losses) on derivative instruments | $ 2,686 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration on acquisitions | $ (11,751) | $ (9,172) | |
Level 1 | Fair values | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivatives | |||
Contingent consideration on acquisitions | |||
Level 2 | Fair values | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivatives | 2,686 | 2,655 | |
Contingent consideration on acquisitions | |||
Level 3 | Fair values | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivatives | |||
Contingent consideration on acquisitions | $ (7,644) | $ (6,745) | $ (5,465) |
Fair Value Measurements (Deta80
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Business Combination Contingent Consideration Liability [Roll Forward] | |||
Balance, June 30, 2016 | $ (9,172) | ||
Acquisition-related accrued interest | (1,373) | $ (1,476) | $ (613) |
Balance, June 30, 2017 | (11,751) | (9,172) | |
Fair values | Level 3 | |||
Business Combination Contingent Consideration Liability [Roll Forward] | |||
Balance, June 30, 2016 | (6,745) | (5,465) | |
Adjustment to contingent consideration | 404 | ||
Acquisition-related accrued interest | (1,373) | (1,476) | |
Payment | 70 | 196 | |
Balance, June 30, 2017 | $ (7,644) | $ (6,745) | $ (5,465) |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 764,281 | $ 751,526 | $ 748,591 |
Depreciation and amortization | 26,001 | 23,452 | 21,604 |
Reconciliation of income before income taxes to Adjusted EBITDA | |||
Income before income taxes | 80,543 | 76,761 | 78,763 |
Interest expense, net | 14,906 | 16,592 | 14,305 |
Depreciation and amortization | 26,001 | 23,452 | 21,604 |
Acquisition-related cost of goods sold | 2,566 | ||
Acquisition-related accrued compensation | 1,680 | 1,680 | 747 |
Acquisition-related other, net | (972) | ||
Pension settlement cost | 1,702 | ||
Foreign currency (gains) losses, net | (113) | (7,609) | (5,400) |
Loss on extinguishment of debt | 2,598 | ||
Identifiable assets | 623,397 | 607,835 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 764,281 | 751,526 | 748,591 |
Depreciation and amortization | 23,403 | 20,423 | 18,475 |
Adjusted EBITDA - Total segments | 149,744 | 143,383 | 137,334 |
Reconciliation of income before income taxes to Adjusted EBITDA | |||
Income before income taxes | 80,543 | 76,761 | 78,763 |
Interest expense, net | 14,906 | 16,592 | 14,305 |
Depreciation and amortization | 23,403 | 20,423 | 18,475 |
Acquisition-related cost of goods sold | 2,566 | ||
Acquisition-related accrued compensation | 1,680 | 1,680 | 747 |
Acquisition-related transaction costs | 1,274 | 618 | |
Acquisition-related other, net | (972) | ||
Pension settlement cost | 1,702 | ||
Gain on insurance claim | (7,500) | ||
Foreign currency (gains) losses, net | (113) | (7,609) | (5,400) |
Loss on extinguishment of debt | 2,598 | ||
Adjusted EBITDA - Total segments | 149,744 | 143,383 | 137,334 |
Identifiable assets | 521,386 | 524,247 | |
Operating Segments | Animal Health | |||
Segment Reporting Information [Line Items] | |||
Net sales | 497,745 | 486,140 | 470,800 |
Depreciation and amortization | 20,132 | 17,149 | 15,430 |
Adjusted EBITDA - Total segments | 130,261 | 127,442 | 120,259 |
Reconciliation of income before income taxes to Adjusted EBITDA | |||
Depreciation and amortization | 20,132 | 17,149 | 15,430 |
Adjusted EBITDA - Total segments | 130,261 | 127,442 | 120,259 |
Identifiable assets | 442,521 | 444,751 | |
Operating Segments | Mineral Nutrition | |||
Segment Reporting Information [Line Items] | |||
Net sales | 218,298 | 216,685 | 227,102 |
Depreciation and amortization | 2,332 | 2,467 | 2,468 |
Adjusted EBITDA - Total segments | 17,426 | 14,971 | 14,429 |
Reconciliation of income before income taxes to Adjusted EBITDA | |||
Depreciation and amortization | 2,332 | 2,467 | 2,468 |
Adjusted EBITDA - Total segments | 17,426 | 14,971 | 14,429 |
Identifiable assets | 55,184 | 57,939 | |
Operating Segments | Performance Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 48,238 | 48,701 | 50,689 |
Depreciation and amortization | 939 | 807 | 577 |
Adjusted EBITDA - Total segments | 2,057 | 970 | 2,646 |
Reconciliation of income before income taxes to Adjusted EBITDA | |||
Depreciation and amortization | 939 | 807 | 577 |
Adjusted EBITDA - Total segments | 2,057 | 970 | 2,646 |
Identifiable assets | 23,681 | 21,557 | |
Operating Segments | MFAs and other | Animal Health | |||
Segment Reporting Information [Line Items] | |||
Net sales | 321,430 | 339,916 | 335,735 |
Operating Segments | Nutritional Specialties | Animal Health | |||
Segment Reporting Information [Line Items] | |||
Net sales | 111,282 | 94,084 | 81,702 |
Operating Segments | Vaccines | Animal Health | |||
Segment Reporting Information [Line Items] | |||
Net sales | 65,033 | 52,140 | 53,363 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2,598 | 3,029 | 3,129 |
Adjusted EBITDA - Total segments | 29,625 | 29,323 | 27,315 |
Reconciliation of income before income taxes to Adjusted EBITDA | |||
Depreciation and amortization | 2,598 | 3,029 | 3,129 |
Adjusted EBITDA - Total segments | 29,625 | 29,323 | $ 27,315 |
Identifiable assets | $ 102,011 | $ 83,588 |
Business Segments (Detail Textu
Business Segments (Detail Textuals) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Segment Reporting Information [Line Items] | ||
Equity method investments | $ 4,235 | $ 4,580 |
Animal Health | ||
Segment Reporting Information [Line Items] | ||
Equity method investments | 3,719 | 4,076 |
Performance Products | ||
Segment Reporting Information [Line Items] | ||
Equity method investments | $ 516 | $ 504 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net sales | |||
Total net sales | $ 764,281 | $ 751,526 | $ 748,591 |
United States | |||
Net sales | |||
Total net sales | 484,148 | 473,247 | 475,942 |
Israel | |||
Net sales | |||
Total net sales | 92,752 | 89,999 | 93,459 |
Latin America and Canada | |||
Net sales | |||
Total net sales | 96,687 | 105,667 | 99,578 |
Europe and Africa | |||
Net sales | |||
Total net sales | 40,211 | 36,177 | 36,397 |
Asia/Pacific | |||
Net sales | |||
Total net sales | $ 50,483 | $ 46,436 | $ 43,215 |
Geographic Information (Detai84
Geographic Information (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Property, plant and equipment, net | $ 127,351 | $ 127,323 |
United States | ||
Property, plant and equipment, net | 56,459 | 56,735 |
Israel | ||
Property, plant and equipment, net | 47,027 | 46,706 |
Brazil | ||
Property, plant and equipment, net | 22,793 | 22,720 |
Other | ||
Property, plant and equipment, net | $ 1,072 | $ 1,162 |