Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AVD | ||
Entity Registrant Name | AMERICAN VANGUARD CORP | ||
Entity Central Index Key | 5981 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 29,176,220 | ||
Entity Public Float | $372,500,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $4,885 | $6,680 |
Receivables: | ||
Trade, net of allowance for doubtful accounts of $166 and $392, respectively | 86,027 | 74,060 |
Other | 2,396 | 892 |
Total receivables | 88,423 | 74,952 |
Inventories | 165,631 | 139,830 |
Prepaid expenses | 13,415 | 11,435 |
Income taxes receivable | 5,964 | 10,088 |
Deferred income tax assets | 8,731 | 6,521 |
Total current assets | 287,049 | 249,506 |
Property, plant and equipment, net | 50,026 | 52,468 |
Intangible assets, net of applicable amortization | 100,211 | 107,007 |
Other assets | 35,885 | 38,462 |
Total assets | 473,171 | 447,443 |
Current liabilities: | ||
Current installments of other notes payable | 71 | 69 |
Current installments of other liabilities | 1,357 | 2,132 |
Accounts payable | 20,411 | 40,702 |
Deferred revenue | 898 | 3,788 |
Accrued program costs | 52,546 | 53,630 |
Accrued expenses and other payables | 5,962 | 10,178 |
Total current liabilities | 81,245 | 110,499 |
Long-term debt and other notes payable, excluding current installments | 99,455 | 51,676 |
Other liabilities, excluding current installments | 3,309 | 4,143 |
Deferred income tax liabilities | 28,159 | 23,330 |
Total liabilities | 212,168 | 189,648 |
Commitments and contingent liabilities | ||
Stockholders' equity: | ||
Preferred stock, $.10 par value per share; authorized 400,000 shares; none issued | ||
Common stock, $.10 par value per share; authorized 40,000,000 shares; issued 31,550,477 shares in 2014 and 31,092,782 shares in 2013 | 3,156 | 3,109 |
Additional paid-in capital | 66,232 | 60,160 |
Accumulated other comprehensive loss | -1,970 | -1,048 |
Retained earnings | 202,488 | 202,470 |
Total stockholders' equity including treasury stock | 269,906 | 264,691 |
Less treasury stock at cost, 2,450,634 shares in 2014 and 2,380,634 shares in 2013 | -8,269 | -6,738 |
American Vanguard Corporation stockholders' equity | 261,637 | 257,953 |
Non-controlling interest | -634 | -158 |
Total stockholders' equity | 261,003 | 257,795 |
Total liabilities and stockholders' equity | $473,171 | $447,443 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $166 | $392 |
Preferred stock, par value per share | $0.10 | $0.10 |
Preferred stock, shares authorized | 400,000 | 400,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $0.10 | $0.10 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 31,550,477 | 31,092,782 |
Treasury stock, shares | 2,450,634 | 2,380,634 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $298,634 | $381,021 | $366,190 |
Cost of sales | 184,138 | 209,674 | 205,065 |
Gross profit | 114,496 | 171,347 | 161,125 |
Operating expenses | 107,786 | 115,612 | 101,802 |
Operating income | 6,710 | 55,735 | 59,323 |
Interest expense | 3,172 | 2,176 | 2,872 |
Interest income | -19 | -1 | -1 |
Interest capitalized | -87 | -274 | -400 |
Income (loss) before income taxes total | 3,644 | 53,834 | 56,852 |
Income taxes (benefit) expense | -451 | 18,916 | 20,026 |
Income before loss on equity investment | 4,095 | 34,918 | 36,826 |
Less net loss from equity method investment | -29 | -986 | |
Net income | 4,066 | 33,932 | 36,826 |
Add back net loss attributable to non-controlling interest | 775 | 517 | 41 |
Net income attributable to American Vanguard | 4,841 | 34,449 | 36,867 |
Change in fair value of interest rate swaps | 340 | 388 | 158 |
Foreign currency translation adjustment | -1,262 | 326 | 330 |
Comprehensive income | $3,919 | $35,163 | $37,355 |
Earnings per common share-basic | $0.17 | $1.22 | $1.32 |
Earnings per common share-assuming dilution | $0.17 | $1.19 | $1.28 |
Weighted average shares outstanding-basic | 28,436 | 28,301 | 27,914 |
Weighted average shares outstanding-assuming dilution | 28,912 | 28,899 | 28,756 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(loss) | Treasury Stock | AVD Total | Non- Controlling Interest |
In Thousands, except Share data | ||||||||
Beginning Balance at Dec. 31, 2011 | $187,072 | $2,985 | $45,966 | $143,524 | ($2,250) | ($3,153) | $187,072 | |
Beginning Balance (in shares) at Dec. 31, 2011 | 29,845,047 | 2,260,996 | ||||||
Stocks issued under ESPP (in shares) | 40,116 | 40,116 | ||||||
Stocks issued under ESPP | 551 | 4 | 547 | 551 | ||||
Cash dividends on common stock, $0.22 per share 2012, $0.22 per share 2013, $0.17 per share 2014 | -6,148 | -6,148 | -6,148 | |||||
Foreign currency translation adjustment, net | 330 | 330 | 330 | |||||
Stock based compensation | 2,950 | 2,950 | 2,950 | |||||
Changes in fair value of interest swap | 158 | 158 | 158 | |||||
Stock options exercised and grants of restricted stock units | 2,676 | 88 | 4,239 | -1,651 | 2,676 | |||
Stock options exercised and grants of restricted stock units, Shares | 881,567 | 49,638 | ||||||
Excess tax benefits from share based payment arrangements | 621 | 621 | 621 | |||||
Non-controlling interest contribution | 400 | 400 | ||||||
Net (loss) income | 36,826 | 36,867 | 36,867 | -41 | ||||
Ending Balance at Dec. 31, 2012 | 225,436 | 3,077 | 54,323 | 174,243 | -1,762 | -4,804 | 225,077 | 359 |
Ending Balance (in shares) at Dec. 31, 2012 | 30,766,730 | 2,310,634 | ||||||
Stocks issued under ESPP (in shares) | 27,923 | 27,923 | ||||||
Stocks issued under ESPP | 743 | 3 | 740 | 743 | ||||
Cash dividends on common stock, $0.22 per share 2012, $0.22 per share 2013, $0.17 per share 2014 | -6,222 | -6,222 | -6,222 | |||||
Foreign currency translation adjustment, net | 326 | 326 | 326 | |||||
Stock based compensation | 3,819 | 3,819 | 3,819 | |||||
Changes in fair value of interest swap | 388 | 388 | 388 | |||||
Stock options exercised and grants of restricted stock units | 867 | 29 | 838 | 867 | ||||
Stock options exercised and grants of restricted stock units, Shares | 298,129 | |||||||
Excess tax benefits from share based payment arrangements | 440 | 440 | 440 | |||||
Shares repurchased (in shares) | 70,000 | |||||||
Shares repurchased | -1,934 | -1,934 | -1,934 | |||||
Net (loss) income | 33,932 | 34,449 | 34,449 | -517 | ||||
Ending Balance at Dec. 31, 2013 | 257,795 | 3,109 | 60,160 | 202,470 | -1,048 | -6,738 | 257,953 | -158 |
Ending Balance (in shares) at Dec. 31, 2013 | 31,092,782 | 31,092,782 | 2,380,634 | |||||
Stocks issued under ESPP (in shares) | 47,213 | 47,213 | ||||||
Stocks issued under ESPP | 806 | 6 | 800 | 806 | ||||
Cash dividends on common stock, $0.22 per share 2012, $0.22 per share 2013, $0.17 per share 2014 | -4,823 | -4,823 | -4,823 | |||||
Foreign currency translation adjustment, net | -1,262 | -1,262 | -1,262 | |||||
Stock based compensation | 4,153 | 4,153 | 4,153 | |||||
Changes in fair value of interest swap | 340 | 340 | 340 | |||||
Stock options exercised and grants of restricted stock units | 860 | 41 | 819 | 860 | ||||
Stock options exercised and grants of restricted stock units, Shares | 410,482 | |||||||
Excess tax benefits from share based payment arrangements | 300 | 300 | 300 | |||||
Shares repurchased (in shares) | 70,000 | |||||||
Shares repurchased | -1,531 | -1,531 | -1,531 | |||||
Non-controlling interest contribution | 299 | 299 | ||||||
Net (loss) income | 4,066 | 4,841 | 4,841 | -775 | ||||
Ending Balance at Dec. 31, 2014 | $261,003 | $3,156 | $66,232 | $202,488 | ($1,970) | ($8,269) | $261,637 | ($634) |
Ending Balance (in shares) at Dec. 31, 2014 | 31,550,477 | 31,550,477 | 2,450,634 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash dividends on common stock, per share | $0.17 | $0.22 | $0.22 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $4,066 | $33,932 | $36,826 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization of fixed and intangible assets | 16,332 | 14,845 | 13,487 |
Amortization of other long term assets | 5,811 | 4,598 | 2,925 |
Amortization of discounted liabilities | 324 | 174 | 818 |
Stock-based compensation | 4,153 | 3,819 | 2,950 |
Tax benefit from exercise of stock options | -300 | -440 | -621 |
Increase (decrease) in deferred income taxes | 2,619 | 2,523 | -886 |
Operating loss from equity method investment | 983 | 986 | |
Gain from dilution of equity method investment | -954 | ||
Changes in assets and liabilities associated with operations: | |||
(Increase) decrease in net receivables | -13,471 | 2,351 | -7,505 |
Increase in inventories | -25,801 | -51,879 | -16,883 |
Decrease (increase) in income tax receivable/payable, net | 4,424 | -10,961 | 2,137 |
Increase in prepaid expenses and other assets | -4,743 | -19,733 | -23,725 |
(Decrease) increase in accounts payable | -19,951 | 8,252 | 9,781 |
(Decrease) increase in deferred revenue | -2,890 | -16,639 | 12,856 |
(Decrease) increase in other payables and accrued expenses | -4,697 | 21,958 | 8,264 |
Net cash (used in) provided by operating activities | -34,095 | -6,214 | 40,424 |
Cash flows from investing activities: | |||
Capital expenditures | -7,180 | -15,260 | -17,628 |
Investment | -500 | -3,687 | |
Acquisitions of intangible assets | -3,473 | ||
Net cash used in investing activities | -7,680 | -18,947 | -21,101 |
Cash flows from financing activities: | |||
Net borrowings under line of credit agreement | 47,850 | 51,550 | |
Payments on long-term debt | -46,000 | -8,443 | |
Payment on other long-term liabilities | -1,756 | -1,831 | -6,035 |
Tax benefit from exercise of stock options | 300 | 440 | 621 |
Decrease in other notes payable | -6,154 | -51 | |
Repurchases of common stock | -1,531 | -1,934 | |
Proceeds from the issuance of common stock (sale of stock under ESPP and exercise of stock options) | 1,666 | 1,610 | 3,227 |
Non-controlling interest contribution | 299 | 400 | |
Payment of cash dividends | -5,672 | -4,804 | -6,148 |
Net cash provided by (used in) financing activities | 41,156 | -7,123 | -16,429 |
Net (decrease) increase in cash | -619 | -32,284 | 2,894 |
Effect of exchange rate changes on cash | -1,176 | 488 | 497 |
Cash and cash equivalents at beginning of year | 6,680 | 38,476 | 35,085 |
Cash and cash equivalents at end of year | 4,885 | 6,680 | 38,476 |
Cash paid (received) during the year for: | |||
Interest | 2,298 | 1,777 | 1,891 |
Income taxes | ($8,206) | $25,271 | $18,048 |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts | Schedule II-A—Valuation and Qualifying Accounts | ||||||||||||||||||||
Allowance for Doubtful Accounts Receivable (in thousands) | |||||||||||||||||||||
Fiscal Year Ended | Balance at | Additions Charged to | Deductions | Balance at | |||||||||||||||||
Beginning of | End of | ||||||||||||||||||||
Period | Costs and | Other | Period | ||||||||||||||||||
Expenses | |||||||||||||||||||||
December 31, 2014 | $ | 392 | $ | 75 | $ | — | $ | (301 | ) | $ | 166 | ||||||||||
December 31, 2013 | $ | 623 | $ | — | $ | (231 | ) | $ | — | $ | 392 | ||||||||||
December 31, 2012 | $ | 340 | $ | — | $ | 283 | $ | — | $ | 623 | |||||||||||
Description_of_Business_Basis_
Description of Business, Basis of Consolidation and Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Description of Business, Basis of Consolidation and Significant Accounting Policies | Description of Business, Basis of Consolidation and Significant Accounting Policies | ||||||||||||||||||||||||||||
American Vanguard Corporation (the “Company”) is primarily a specialty chemical manufacturer that develops and markets safe and effective products for agricultural, commercial and consumer uses. The Company manufactures and formulates chemicals for crops, human and animal protection. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and Envance, its majority owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company operates within a single operating segment. | |||||||||||||||||||||||||||||
Based on similar economic and operational characteristics, the Company’s business is aggregated into one reportable segment. Selective enterprise information is as follows: | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||
Insecticides | $ | 135,705 | $ | 193,623 | $ | 194,060 | |||||||||||||||||||||||
Herbicides/soil fumigants/fungicides | 101,785 | 121,042 | 89,899 | ||||||||||||||||||||||||||
Other, including plant growth regulators | 30,220 | 31,849 | 45,581 | ||||||||||||||||||||||||||
Total crop | 267,710 | 346,514 | 329,540 | ||||||||||||||||||||||||||
Non-crop | 30,924 | 34,507 | 36,650 | ||||||||||||||||||||||||||
$ | 298,634 | $ | 381,021 | $ | 366,190 | ||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||
Crop | $ | 101,633 | $ | 155,275 | $ | 142,019 | |||||||||||||||||||||||
Non-crop | 12,863 | 16,072 | 19,106 | ||||||||||||||||||||||||||
$ | 114,496 | $ | 171,347 | $ | 161,125 | ||||||||||||||||||||||||
Due to elements inherent to the Company’s business, such as differing and unpredictable weather patterns, crop growing cycles, changes in product mix of sales and ordering patterns that may vary in timing, measuring the Company’s performance on a quarterly basis (gross profit margins on a quarterly basis may vary significantly) even when such comparisons are favorable, is not as good an indicator as full-year comparisons. | |||||||||||||||||||||||||||||
Cost of Sales—In addition to normal cost centers (i.e., direct labor, raw materials) included in cost of sales, the Company also includes such cost centers as Health and Safety, Environmental, Maintenance and Quality Control in cost of sales. | |||||||||||||||||||||||||||||
Operating Expenses—Operating expenses include cost centers for Selling, General and Administrative, Research, Product Development, and Regulatory, Freight, Delivery and Warehousing. | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Selling | $ | 31,593 | $ | 32,929 | $ | 25,869 | |||||||||||||||||||||||
General and administrative | 27,057 | 33,536 | 29,715 | ||||||||||||||||||||||||||
Research, product development and regulatory | 21,206 | 21,644 | 20,750 | ||||||||||||||||||||||||||
Freight, delivery and warehousing | 27,930 | 27,503 | 25,468 | ||||||||||||||||||||||||||
$ | 107,786 | $ | 115,612 | $ | 101,802 | ||||||||||||||||||||||||
Freight, Delivery and Warehousing Expense—Freight, delivery and warehousing costs incurred by the Company are reported as operating expenses. | |||||||||||||||||||||||||||||
Advertising Expense—The Company expenses advertising costs in the period incurred. Advertising expenses, which include promotional costs, are recognized in operating costs (specifically in selling expenses) in the consolidated statements of operations and were $4,322 in 2014, $4,011 in 2013 and $2,680 in 2012. | |||||||||||||||||||||||||||||
Inventories —The Company values its inventories at lower of cost or market. Cost is determined by the first-in, first-out (“FIFO”) method, including material, labor, factory overhead and subcontracting services. The Company writes down and makes adjustments to its inventory carrying values as a result of the effects of unutilized capacity, net realizable value assessments of slow moving and obsolete inventory and other annual adjustments to ensure that our standard costs continue to closely reflect manufacturing cost. The Company recorded an inventory reserve allowance of $3,882 at December 31, 2014, as compared to $2,602 at December 31, 2013. | |||||||||||||||||||||||||||||
The components of inventories consist of the following: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Finished products | $ | 142,853 | $ | 126,872 | |||||||||||||||||||||||||
Raw materials | 22,778 | 12,958 | |||||||||||||||||||||||||||
$ | 165,631 | $ | 139,830 | ||||||||||||||||||||||||||
Revenue Recognition and Allowance for Doubtful Accounts—Revenue from sales is recognized at the time title and the risks of ownership pass. This is when the customer has made the fixed commitment to purchase the goods, the products are shipped per the customer’s instructions, the sales price is fixed and determinable, and collection is reasonably assured. The Company has in place procedures to ensure that revenue is recognized when earned. The procedures are subject to management’s review and from time to time certain sales are excluded until it is clear that the title has passed and there is no further recourse to the Company. Allowance for doubtful accounts is established based on estimates of losses related to customer receivable balances. Estimates are developed using either standard quantitative measures based on historical losses, adjusted for current economic conditions or by evaluating specific customer accounts for risk of loss. | |||||||||||||||||||||||||||||
Accrued Program Costs—In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, the Company classifies certain payments to its customers as a reduction of sales revenues. The Company describes these payments as “Programs.” Programs are a critical part of doing business in the agricultural chemicals business market place. For accounting purposes, programs are recorded as a reduction in gross sales and include market pricing adjustments, volume take up or other key performance indicators, driven payments made to distributors, retailers or growers at the end of a growing season. Each quarter management compares each sale transaction with published programs to determine what program liability has been incurred. Once this initial calculation is made for the specific quarter, sales and marketing management along with executive and financial management review the accumulated program balance and make assessments of whether or not customers are tracking in a manner that indicates that they will meet the requirements set out in the terms and conditions attached to each program. If management believes that customers are falling short of their annual goals then periodic adjustments will be made to the accumulated accrual to properly reflect the Company’s best estimate of the liability at the balance sheet date. The majority of adjustments are made at the end of the crop season, at which time customer performance can be fully assessed. Programs are paid out predominantly on an annual basis, usually in the final quarter of the financial year or the first quarter of the following year. | |||||||||||||||||||||||||||||
Long-lived Assets— Long-lived assets primarily consist of the costs of Smartbox and Lock and Load containers. The carrying value of long-lived assets is reviewed for impairment quarterly and/or whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The Company evaluates recoverability of an asset group by comparing the carrying value to the future undiscounted cash flows that it expects to generate from the asset group. If the comparison indicates that the carrying value of an asset group is not recoverable, measurement of the impairment loss is based on the fair value of the asset. There were no circumstances that indicate any impairment of the carrying value of these long-lived assets and, as a result, no impairment losses were recorded in 2014 or 2013. | |||||||||||||||||||||||||||||
Property, Plant and Equipment and Depreciation—Property, plant and equipment includes the cost of land, buildings, machinery and equipment, office furniture and fixtures, automobiles, construction projects and significant improvements to existing plant and equipment. Interest costs related to significant construction projects are capitalized at the Company’s current weighted effective interest rate. Expenditures for maintenance and minor repairs are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts, and the gain or loss realized on disposition is reflected in earnings. All plant and equipment is depreciated using the straight-line method, utilizing the estimated useful property lives. Building lives range from 10 to 30 years; machinery and equipment lives range from 3 to 15 years; office furniture and fixture lives range from 3 to 10 years; automobile lives range from 3 to 6 years; construction projects and significant improvements to existing plant and equipment lives range from 3 to 15 years when placed in service. The agricultural chemicals business involves complex manufacturing processes that drive high capital cost plant. | |||||||||||||||||||||||||||||
Foreign Currency Translation—Assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, have been translated at period end exchange rates, and profit and loss accounts have been translated using weighted average yearly exchange rates. Adjustments resulting from translation have been recorded in the equity section of the balance sheet as cumulative translation adjustments in other comprehensive income (loss). The effects of foreign currency exchange gains and losses on transactions that are denominated in currencies other than the Company’s functional currency are remeasured to the functional currency using the end of the period exchange rates. The effects of remeasurement related to foreign currency transactions are included in the Company’s operating results. | |||||||||||||||||||||||||||||
Derivative financial instruments and hedge activities—In accordance with FASB ASC 815, Derivatives and Hedging, the Company recognizes all derivative instruments as either other assets or other liabilities at fair value on the balance sheet. In accordance with the hierarchy contained in FASB ASC 820, Fair Value Measurements, the Company calculated fair value using observable inputs other than Level 1 quoted prices (Level 2). During 2014, the Company had in place one interest rate swap contract that ended on December 31, 2014. While in place, the interest rate swap contract was accounted for under FASB ASC 815 as a cash flow hedge. The effective portion of the gains or losses on the interest rate swap are reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. As a result of the termination of the swap contract (as mentioned above), no balances remain in other comprehensive income at December 31, 2014. Losses in other comprehensive income that were expected to be reclassified to earnings in the coming 12 months were $564 and $689 at the end of December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||
The following tables illustrate the impact of derivatives on the Company’s statement of operations for the year ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Financial Performance | |||||||||||||||||||||||||||||
For the Period Ended December 31 | |||||||||||||||||||||||||||||
Derivatives in ASC 815 Cash Flow | Amount of Gain or | Location of Gain or | Amount of Gain or | Location of Gain or | Amount of Gain or | ||||||||||||||||||||||||
(Loss) Recognized in | (Loss) Reclassified | (Loss) Reclassified | (Loss) Recognized in | (Loss) Recognized | |||||||||||||||||||||||||
OCI on Derivative | from Accumulated | from Accumulated | Income on Derivative | in Income on | |||||||||||||||||||||||||
(Effective Portion) | OCI into Income | OCI into Income | Derivative | ||||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||||||
Hedging Relationships | 2014 | 2013 | (Effective Portion) | 2014 | 2013 | (Ineffective Portion) | 2014 | 2013 | |||||||||||||||||||||
Interest rate contracts | $ | (30 | ) | $ | (75 | ) | Interest expense | $ | (594 | ) | $ | (712 | ) | Interest expense | $ | (3 | ) | $ | (1 | ) | |||||||||
Total | $ | (30 | ) | $ | (75 | ) | $ | (594 | ) | $ | (712 | ) | $ | (3 | ) | $ | (1 | ) | |||||||||||
The counterparty to the interest rate derivative financial instrument that had been held by the Company during 2014 is Bank of the West, the Company’s primary bank. Pledged cash collateral was not required under the interest rate swap contract. There are no derivative financial instruments at December 31, 2014. | |||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets—The primary identifiable intangible assets of the Company relate to assets associated with its product acquisitions. The Company adopted the provisions of FASB ASC 350, under which identifiable intangibles with finite lives are amortized and those with indefinite lives are not amortized. The estimated useful life of an identifiable intangible asset to the Company is based upon a number of factors including the effects of demand, competition, and expected changes in the marketability of the Company’s products. The Company re-evaluates whether these intangible assets are impaired on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets. The impairment test for identifiable intangible assets not subject to amortization consists of either a qualitative assessment or a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss, if any, is recognized for the amount by which the carrying value exceeds the fair value of the asset. Fair value is typically estimated using a discounted cash flow analysis, which requires the Company to estimate the future cash flows anticipated to be generated by the particular asset(s) being tested for impairment as well as selecting a discount rate to measure the present value of the anticipated cash flows. When determining future cash flow estimates, the Company considers historical results adjusted to reflect current and anticipated operating conditions. Estimating future cash flows requires significant judgment by the Company, in such areas as: future economic conditions, industry-specific conditions, product pricing and necessary capital expenditures. The use of different assumptions or estimates for future cash flows could produce different impairment amounts (or none at all) for long-lived assets, goodwill and identifiable intangible assets. The Company has performed an impairment review for the year ending December 31, 2014 and determined that one asset must be written down to zero, generating an impairment loss of $319. There were no similar impairment losses recorded in 2013 or 2012. | |||||||||||||||||||||||||||||
Fair Value of Equity Investment—The Company utilizes the equity method of accounting with respect to its investment in TyraTech Inc. (“TyraTech”), a Delaware corporation that specializes in developing, marketing and selling pesticide products containing essential oils and other natural ingredients. In February 2014, TyraTech issued 37,391,763 shares, raising approximately £1.87 ($3.1) million. In July 2014, TyraTech issued a further 50,000,000 shares and raised approximately £3.5 ($5.9) million. Due to the share issuance in both periods, the Company recognized a total gain of $954 from the dilution of the Company’s ownership position as required by ASC 323. In October 2014, the Company exercised warrants in the amount of $500 and purchased 6,155,000 shares in TyraTech. As of December 31, 2014, the Company’s ownership position in TyraTech was approximately 21.18%. At December 31, 2014, the carrying value of the Company’s investment in TyraTech was $3,172 and the quoted market value based on TyraTech’s share price (Level 1 input) was $3,555. TyraTech’s shares trade on the AIM market of the London Stock Exchange under the trading symbol ‘TYR’. The Company’s equity investment is included in other assets on the consolidated balance sheet. | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments—The carrying values of cash, receivables and accounts payable approximate their fair values because of the short maturity of these instruments. The fair value of the Company’s long-term debt and note payable to our lender group is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. Such fair value approximates the respective carrying values of the Company’s long-term debt and note payable to bank. | |||||||||||||||||||||||||||||
The Company measures fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following: | |||||||||||||||||||||||||||||
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs. | |||||||||||||||||||||||||||||
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||||||||
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |||||||||||||||||||||||||||||
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk in the assessment of fair value. | |||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
Using Input Type | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||||||
Liability: | |||||||||||||||||||||||||||||
Interest rate derivative financial instruments (1) | $ | — | $ | 564 | $ | — | |||||||||||||||||||||||
-1 | Includes accrued interest expense. | ||||||||||||||||||||||||||||
Income Taxes—The Company utilizes the liability method of accounting for income taxes as set forth in ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances, the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. | |||||||||||||||||||||||||||||
The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. | |||||||||||||||||||||||||||||
Per Share Information—FASB ASC 260 requires dual presentation of basic earnings per share (“EPS”) and diluted EPS on the face of all income statements. Basic EPS is computed as net income divided by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects potential dilution to EPS that could occur if securities or other contracts, which, for the Company, consists of restricted stock grants and options to purchase shares of the Company’s common stock, are exercised as calculated using the treasury stock method. | |||||||||||||||||||||||||||||
The components of basic and diluted earnings per share were as follows: | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Net income attributable to American Vanguard | $ | 4,841 | $ | 34,449 | $ | 36,867 | |||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average shares outstanding—basic | 28,436 | 28,301 | 27,914 | ||||||||||||||||||||||||||
Dilutive effect of stock options and grants | 476 | 598 | 842 | ||||||||||||||||||||||||||
28,912 | 28,899 | 28,756 | |||||||||||||||||||||||||||
The Company excluded 1,616 stock options from the computation of diluted earnings per share for the year ended December 31, 2014, because they are anti-dilutive. For the years ended December 31, 2013 and 2012, no options were excluded from the computation. | |||||||||||||||||||||||||||||
Accounting Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses at the date that the financial statements are prepared. Actual results could differ from those estimates. | |||||||||||||||||||||||||||||
Reclassifications—Certain prior year’s amounts have been reclassified to conform to the current year’s presentation. | |||||||||||||||||||||||||||||
Total comprehensive income—In addition to net income, total comprehensive income includes changes in equity that are excluded from the consolidated statements of operations and are recorded directly into a separate section of stockholders’ equity on the consolidated balance sheets. For the years ended December 31, 2014 and 2013, total comprehensive income consisted of net income attributable to American Vanguard, the change in fair value of interest rate swaps and foreign currency translation adjustments. | |||||||||||||||||||||||||||||
Stock-Based Compensation—The Company accounts for stock-based awards to employees and directors using FASB ASC 718. When applying the provisions of FASB ASC 718, the Company also applies the provisions of Staff Accounting Bulletin (“SAB”) No. 107 and SAB No. 110. | |||||||||||||||||||||||||||||
FASB ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. | |||||||||||||||||||||||||||||
Stock-based compensation expense recognized during the period is based on the fair value of the portion of share-based payment awards that is ultimately expected to vest during the period. Stock-based compensation expense recognized is reduced for forfeitures as required by FASB ASC 718. Estimated forfeitures recognized in the Company’s Consolidated Statement of Operations reduced compensation expense by $247, $247, and $88 for the years ended December 31, 2014, 2013, and 2012, respectively. The Company estimates that 7.3% of all restricted stock grants, 20.7% of the performance based restricted shares and 4.2% of all stock option grants that are currently vesting will be forfeited. These estimates are reviewed quarterly and revised as necessary. | |||||||||||||||||||||||||||||
The below table illustrates the Company’s unamortized stock-based compensation expenses as of December 31, 2014 and December 31, 2013 that will be recognized over the respective weighted average period. This projected expense will change if any stock options and restricted stock are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures. | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Description | Unamortized | Remaining | Unamortized | Remaining | |||||||||||||||||||||||||
Stock-Based | Weighted | Stock-Based | Weighted | ||||||||||||||||||||||||||
Compensation | Average | Compensation | Average | ||||||||||||||||||||||||||
Expenses | Period (yrs) | Expenses | Period (yrs) | ||||||||||||||||||||||||||
Options | $ | 1,457 | 3 | $ | 21 | 0.5 | |||||||||||||||||||||||
Performance Based Options | 551 | 3 | — | — | |||||||||||||||||||||||||
Restricted Stock | 4,829 | 1.8 | 5,550 | 1.9 | |||||||||||||||||||||||||
Performance Based Restricted Stock | 1,249 | 2.1 | 564 | 2.4 | |||||||||||||||||||||||||
The Company uses the Black-Scholes option-pricing model (“Black-Scholes model”) to value option grants using the following weighted average assumptions: | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Risk free interest rate | 2 | % | |||||||||||||||||||||||||||
Dividend yield | 0.9 | % | |||||||||||||||||||||||||||
Volatility factor | 48.9 | % | |||||||||||||||||||||||||||
Weighted average life (years) | 6.5 years | ||||||||||||||||||||||||||||
The weighted average grant-date fair values of options granted during 2014 was $5.27. There were no option shares granted during 2013 and 2012. | |||||||||||||||||||||||||||||
The expected volatility and expected life assumptions are highly complex and use subjective variables. The variables take into consideration, among other things, actual and projected employee stock option exercise behavior. The Company estimates the expected term or vesting period using the “safe harbor” provisions of SAB 107 and SAB 110. The Company used historical volatility as a proxy for estimating expected volatility. | |||||||||||||||||||||||||||||
The Company values restricted stock grants using the Company’s traded stock price on the date of grant. The weighted average grant-date fair values of restricted stock grants during 2014, 2013, and 2012 were $14.81, $30.91, and $21.51, respectively. | |||||||||||||||||||||||||||||
Recently Issued Accounting Guidance | |||||||||||||||||||||||||||||
In August 2014, The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU requires that management of an entity assesses whether there is substantial doubt about the ability of the entity to continue as a going concern and for making the appropriate disclosures. The assessment must be performed at each annual and interim reporting period, and there is substantial doubt about an entity’s ability to continue as a going concern if it is probable that the entity will be unable to meet its obligations as they become due within 12 months of the date of the financial statements are issued. In the assessment, management must consider the information available at the date of issuance of the financial statements, as well as mitigating factors and plans to alleviate the substantial doubt. ASU 2014-15 is effective for annual period ending after December 15, 2016 and interim periods thereafter. Early application is permitted. Upon adoption, the Company will have to follow the guidance in this ASU when assessing going concern. | |||||||||||||||||||||||||||||
In June 2014, FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period, a consensus of the FASB Emerging Issues Task Force. ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for all entities for interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity may apply the amendments in ASU 2014-12 either (i) prospectively to all awards granted or modified after the effective date or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s consolidated financial condition or results of operations. | |||||||||||||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017 or its impact on our consolidated financial statements. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment | (1) Property, Plant and Equipment | ||||||||||||
Property, plant and equipment at December 31, 2014 and 2013 consist of the following: | |||||||||||||
2014 | 2013 | Estimated | |||||||||||
useful lives | |||||||||||||
Land | $ | 2,458 | $ | 2,458 | |||||||||
Buildings and improvements | 14,380 | 14,167 | 10 to 30 years | ||||||||||
Machinery and equipment | 107,899 | 94,184 | 3 to 15 years | ||||||||||
Office furniture, fixtures and equipment | 4,698 | 9,717 | 3 to 10 years | ||||||||||
Automotive equipment | 374 | 278 | 3 to 6 years | ||||||||||
Construction in progress | 3,432 | 10,615 | |||||||||||
133,241 | 131,419 | ||||||||||||
Less accumulated depreciation | (83,215 | ) | (78,951 | ) | |||||||||
$ | 50,026 | $ | 52,468 | ||||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Long-Term Debt | (2) Long-Term Debt | ||||||||||||||||||||||||
Long-term debt of the Company at December 31, 2014 and 2013 is summarized as follows: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Revolving line of credit(a) | $ | 99,400 | $ | 51,550 | |||||||||||||||||||||
Notes payable | 126 | 195 | |||||||||||||||||||||||
99,526 | 51,745 | ||||||||||||||||||||||||
Less current installments | (71 | ) | (69 | ) | |||||||||||||||||||||
$ | 99,455 | $ | 51,676 | ||||||||||||||||||||||
Approximate principal payments on long-term debt at December 31, 2014 are as follows: | |||||||||||||||||||||||||
2015 | $ | 71 | |||||||||||||||||||||||
2016 | 55 | ||||||||||||||||||||||||
2017 | — | ||||||||||||||||||||||||
2018 | 99,400 | ||||||||||||||||||||||||
$ | 99,526 | ||||||||||||||||||||||||
a) | On July 11, 2014, AMVAC Chemical Corporation (“AMVAC”), our principal operating subsidiary, as borrower, and affiliates (including the Company), as guarantors and/or borrowers, entered into a First Amendment to Second Amended and Restated Credit Agreement (the “First Amendment”) with a group of commercial lenders led by Bank of the West (AMVAC’s primary bank) as agent, swing line lender and L/C issuer. The First Amendment amends the Second Amended and Restated Credit Agreement (“2013 Credit Agreement”) dated as of June 17, 2013. Under the terms of the First Amendment, the Consolidated Funded Debt Ratio was increased for the third and fourth quarters of 2014 and the first quarter of 2015, and, further, borrowers are permitted to pay cash dividends to shareholders during the first and second quarters of 2015, notwithstanding prior levels of net income. The 2013 Credit Agreement, as amended by the First Amendment (the “Credit Agreement”) is a senior secured lending facility with a five year term and consisting of a revolving line of credit of $200 million and an accordion feature for up to $100 million. The Credit Agreement includes both AMVAC CV and AMVAC BV as borrowers. Under the Credit Agreement, revolving loans bear interest at a variable rate based, at borrower’s election with proper notice, on either (i) LIBOR plus the “Applicable Rate” which is based upon the Consolidated Funded Debt Ratio (“Eurocurrency Rate Loan”) or (ii) the greater of (x) the Prime Rate, (y) the Federal Funds Rate plus 0.5%, and (z) the Daily One-Month LIBOR Rate plus 1.00%, plus, in the case of (x), (y) or (z) the Applicable Rate (“Alternate Base Rate Loan”). Interest payments for Eurocurrency Rate Loans are payable on the last day of each interest period (either one, two, three or six months, as selected by the borrower) and the maturity date, while interest payments for Alternate Base Rate Loans are payable on the last business day of each month and the maturity date. The senior secured revolving line of credit matures on June 17, 2018. | ||||||||||||||||||||||||
The Company uses a pay fixed, receive 1M LIBOR (London Interbank Offered Rate) interest rate swap to manage the interest expense generated by variable rate debt. At December 31, 2014 the Company did not have an interest rate swap in place. At December 31, 2013 and 2012, the Company had in place an interest rate swap, the use of which resulted in a fixed interest rate of 3.39% for the portion of variable rate debt that was covered by the interest rate swap contract. The interest rate swap contract was put in place on March 30, 2011 and expired on December 31, 2014. The table below shows the amount of outstanding debt and the related notional amount on the interest rate swap contract at each of the balance sheet dates: | |||||||||||||||||||||||||
Outstanding | Notional Amount on | ||||||||||||||||||||||||
Variable Rate Debt | Interest Rate Swap | ||||||||||||||||||||||||
At December 31, 2012 | $ | 46,000 | $ | 44,250 | |||||||||||||||||||||
At December 31, 2013 | 51,550 | 36,750 | |||||||||||||||||||||||
At December 31, 2014 | 99,400 | — | |||||||||||||||||||||||
Under the New Credit Agreement, the Company has three key covenants (with which it was in compliance throughout the year and as of December 31, 2014). The covenants are as follows: (1) the Company must maintain its borrowings below a certain consolidated funded debt ratio, (2) the Company has a limitation on its annual spending on the acquisition of fixed asset capital additions, and (3) the Company must maintain a certain consolidated fixed charge coverage ratio. | |||||||||||||||||||||||||
At December 31, 2014, total indebtedness is $99,526 as compared to $51,745 at December 31, 2013. At December 31, 2014, based on its performance against the most restrictive covenants listed above, the Company has the capacity to increase its borrowings by up to the maximum limit of $26,143 according to the terms of the Credit Agreement. | |||||||||||||||||||||||||
Substantially all of the Company’s assets are pledged as collateral under the Credit Agreement. | |||||||||||||||||||||||||
The Company’s main bank is Bank of the West, a wholly-owned subsidiary of the French bank, BNP Paribas. Bank of the West has been the Company’s bank for more than 30 years. Bank of the West is the syndication manager for the Company’s loans and acts as the counterparty on the Company’s derivative transactions. | |||||||||||||||||||||||||
The Company has various loans in place that together constitute the short-term and long-term loan balances shown in the consolidated balance sheets at December 31, 2014 and December 31, 2013. These are summarized in the following table: | |||||||||||||||||||||||||
Indebtedness | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
$000’s | Long-term | Short-term | Total | Long-term | Short-term | Total | |||||||||||||||||||
Revolving line of credit | $ | 99,400 | $ | — | $ | 99,400 | $ | 51,550 | $ | — | $ | 51,550 | |||||||||||||
Notes payable | 55 | 71 | 126 | 126 | 69 | 195 | |||||||||||||||||||
Total indebtedness | $ | 99,455 | $ | 71 | $ | 99,526 | $ | 51,676 | $ | 69 | $ | 51,745 | |||||||||||||
On June 17, 2013, all outstanding term loans were converted into revolving debt. The average amount outstanding on the term loan during the years ended December 31, 2013 and 2012 was $23,318 and $50,957, respectively. The weighted average interest rate on the term loan during the years ended December 31, 2013 and 2012 was 3.8% and 3.7%, respectively. | |||||||||||||||||||||||||
The average amount outstanding on the senior secured revolving line of credit during the years ended December 31, 2014 and 2013 was $94,899 and $29,284, respectively. The weighted average interest rate on the revolving credit line during the years ended December 31, 2014 and 2013 was 2.5% and 3.1% respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes | (3) Income Taxes | ||||||||||||
The components of income tax (benefit) expense are: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | (4,256 | ) | $ | 12,285 | $ | 17,448 | ||||||
State | 251 | 3,007 | 2,528 | ||||||||||
Foreign | 934 | 1,101 | 1,027 | ||||||||||
Deferred: | |||||||||||||
Federal | 3,492 | 2,213 | (590 | ) | |||||||||
State | (872 | ) | 310 | (387 | ) | ||||||||
$ | (451 | ) | $ | 18,916 | $ | 20,026 | |||||||
Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 35.0% to income before income tax expense as a result of the following: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed tax expense at statutory federal rates | $ | 1,536 | $ | 18,678 | $ | 19,911 | |||||||
Increase (decrease) in taxes resulting from: | |||||||||||||
State taxes, net of federal income tax benefit | (11 | ) | 1,983 | 1,947 | |||||||||
Domestic production deduction | 420 | (1,142 | ) | (1,661 | ) | ||||||||
Income tax credits | (728 | ) | (724 | ) | (395 | ) | |||||||
Foreign tax rate differential | (2,159 | ) | (1,459 | ) | (195 | ) | |||||||
Subpart F income | 338 | — | 87 | ||||||||||
Other expenses | 153 | 1,580 | 332 | ||||||||||
$ | (451 | ) | $ | 18,916 | $ | 20,026 | |||||||
The components of income before provision for income tax expense (benefit) are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | (5,196 | ) | $ | 46,520 | $ | 53,361 | ||||||
Foreign | 8,840 | 7,314 | 3,491 | ||||||||||
$ | 3,644 | $ | 53,834 | $ | 56,852 | ||||||||
Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability at December 31, 2014 and 2013 relate to the following: | |||||||||||||
2014 | 2013 | ||||||||||||
Current: | |||||||||||||
Inventories | $ | 5,558 | $ | 4,398 | |||||||||
State income taxes | (633 | ) | (331 | ) | |||||||||
Vacation pay accrual | 776 | 648 | |||||||||||
Accrued bonuses | 95 | 1,791 | |||||||||||
Bad debt | 45 | 169 | |||||||||||
Prepaid expenses | (1,314 | ) | (1,929 | ) | |||||||||
Stock compensation | 2,446 | 1,281 | |||||||||||
Other | 1,758 | 494 | |||||||||||
Net deferred tax asset | $ | 8,731 | $ | 6,521 | |||||||||
Non-Current: | |||||||||||||
Plant and equipment, principally due to differences in depreciation and capitalized interest | $ | (28,365 | ) | $ | (25,662 | ) | |||||||
NOL Carryforward | 361 | — | |||||||||||
Tax credit | 319 | 14 | |||||||||||
Fair value adjustment | — | 207 | |||||||||||
Other | (474 | ) | 2,111 | ||||||||||
Net deferred tax liability | (28,159 | ) | (23,330 | ) | |||||||||
Total net deferred tax liability | $ | (19,428 | ) | $ | (16,809 | ) | |||||||
The following is a roll-forward of the Company’s total gross unrecognized tax liabilities, not including interest and penalties, for the fiscal year ended December 31, 2014: | |||||||||||||
2014 | 2013 | ||||||||||||
Gross | Gross | ||||||||||||
Unrecognized Tax | Unrecognized Tax | ||||||||||||
Liabilities | Liabilities | ||||||||||||
Balance at December 31, 2013 | $ | 1,692 | $ | 282 | |||||||||
Additions for tax positions related to the current year | 140 | 1,290 | |||||||||||
Additions for tax positions related to the prior year | 499 | 161 | |||||||||||
Deletion for tax positions related to the prior year | (373 | ) | (41 | ) | |||||||||
Balance at December 31, 2014 | $ | 1,958 | $ | 1,692 | |||||||||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s consolidated financial statements. For the year ended December 31, 2014, the Company had recognized approximately $215 in interest and penalties related to unrecognized tax benefits accrued. | |||||||||||||
It is expected that the amount of unrecognized tax benefits will change within the next 12 months; however we do not expect the change to have a significant impact on our consolidated financial statements. At this time, an estimate of the range of the reasonable possible outcomes cannot be made. | |||||||||||||
The Company believes it is more likely than not that the deferred tax assets detailed in the table above will be realized in the normal course of business. It is the intent of the Company that undistributed earnings of foreign subsidiaries are permanently reinvested and, accordingly, no provision for United States federal and state income taxes has been provided thereon. This amounted to $23,803 and $16,202 as of December 31, 2014 and December 31, 2013, respectively. Upon distribution of earnings in the form of dividends or otherwise, the Company would be subject to both United States income taxes (subject to adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the unrecognized deferred United States income tax liability is not practical due to the complexities of a hypothetical calculation. | |||||||||||||
The Company is subject to U.S. federal income tax as well as to income tax in multiple state jurisdictions. Federal income tax returns of the Company are subject to IRS examination for the 2011 through 2013 tax years. State income tax returns are subject to examination for the 2010 through 2013 tax years. | |||||||||||||
The Company’s research and development credit is currently under audit by the California Franchise Tax Board for the years ended December 31, 2004 through December 31, 2006. In February 2015, the Company has agreed in principle to settle this matter for partial payment of the claimed refund plus interest. |
Litigation_and_Environmental
Litigation and Environmental | 12 Months Ended |
Dec. 31, 2014 | |
Litigation and Environmental | (4) Litigation and Environmental |
A. DBCP Cases | |
Over the course of the past 30 years, AMVAC and/or the Company have been named or otherwise implicated in a number of lawsuits concerning injuries allegedly arising from either contamination of water supplies or personal exposure to 1, 2-dibromo-3-chloropropane (“DBCP®”). DBCP was manufactured by several chemical companies, including Dow Chemical Company, Shell Oil Company and AMVAC and was approved by the U.S. EPA to control nematodes. DBCP was also applied on banana farms in Latin America. The U.S. EPA suspended registrations of DBCP in October 1979, except for use on pineapples in Hawaii. The U.S. EPA suspension was partially based on 1977 studies by other manufacturers that indicated a possible link between male fertility and exposure to DBCP among their factory production workers involved with producing the product. | |
At present, there are four domestic lawsuits and approximately 85 Nicaraguan lawsuits, filed by former banana workers in which AMVAC has been named as a party. Only two of the Nicaraguan actions have actually been served on AMVAC. | |
As described more fully below, activity in domestic cases during 2014 is as follows: in Hawaii, Patrickson, et. al. v. Dole Food Company, et. al which had been dismissed in 2011 (for expiration of the statute of limitations), remains on appeal; and Adams, from which co-defendant Dole was dismissed, is on appeal with respect to such dismissal and, at any rate, involves claims that pre-dated AMVAC’s sales into the relevant market. All but two matters that had been pending in Louisiana and Delaware have been dismissed (and affirmed on appeal) based upon the applicable statutes of limitation. Two Delaware cases (Abad-Castillo and Marquinez) (involving claims brought on behalf of 2,700 plantation workers from Costa Rica, Ecuador, Guatemala and Panama) were dismissed on summary judgment (for expiration of the applicable statute of limitations) and are on appeal. With respect to Nicaraguan matters, there was no change in status during 2014. | |
Delaware Matters | |
On May 31, 2012, two cases (captioned, Abad-Castillo and Marquinez) were filed with the United States District Court for the District of Delaware (USCD DE No. 1:12-CV-00696-RGA) involving claims for physical injury arising from alleged exposure to DBCP over the course of the late 1960’s through the mid-1980’s on behalf of 2,700 banana plantation workers from Costa Rica, Ecuador, Guatemala and Panama. Defendant Dole brought a motion to dismiss 22 plaintiffs from the Abad-Castillo case on the ground that they were parties in cases that had been previously filed by the Hendler law firm in Louisiana. On September 19, 2013, the appeals court granted, in part, and denied, in part, the motion to dismiss, holding that 14 of the 22 plaintiffs should be dismissed (as they were named as plaintiffs in prior actions). As for the remaining eight plaintiffs, the court found that there was a question as to whether they were parties to earlier cases in Louisiana. On May 27, 2014, the district court granted defendant Dole’s motion to dismiss the matter without prejudice on the grounds that the applicable statutes of limitation had expired. Then, on August 5, 2014, the parties stipulated to summary judgment in favor of all defendants (on the same grounds as the earlier motion) and the court entered final judgment in the matter. Plaintiffs have appealed this ruling, and, while the appeals court heard oral argument in December 2014, it has not yet issued its ruling. The company believes that a loss is neither probable nor reasonably estimable and, accordingly, has not recorded a loss contingency on these matters. | |
Hawaiian Matters | |
Patrickson, et. al. v. Dole Food Company, et. al | |
In October 1997, AMVAC was served with two complaints in which it was named as a defendant, filed in the Circuit Court, First Circuit, State of Hawaii and in the Circuit Court of the Second Circuit, State of Hawaii (two identical suits) entitled Patrickson, et. al. v. Dole Food Company, et. al (“Patrickson Case”) alleging damages sustained from injuries (including sterility) to banana workers caused by plaintiffs’ exposure to DBCP while applying the product in their native countries. Other named defendants include: Dole Food Company, Shell Oil Company and Dow Chemical Company. The ten named plaintiffs are variously citizens of four countries—Guatemala, Costa Rica, Panama, and Ecuador. Punitive damages are sought against each defendant. The case was also filed as a class action on behalf of other workers allegedly so exposed in these four countries. | |
After several years of law and motion activity, Dow filed a motion for summary adjudication as to the remaining plaintiffs based on the statute of limitations, as they had filed suit in Florida in 1995. All defendants joined in this motion. The court granted this motion on June 9, 2009. Plaintiffs’ counsel unsuccessfully argued that their claims were tolled by prior class action cases. On November 30, 2009, the court denied a motion for reconsideration. Judgment in favor of the defendants was entered on July 28, 2010. On August 24, 2010, the plaintiffs filed a notice of appeal. In March 2011, Dow filed a brief in opposition to the appeal, arguing that plaintiffs are barred from this action by the applicable statute of limitations. The appellate court heard oral argument on the appeal in September 2014 but has not yet issued a ruling. The Company does not believe that a loss is either probable or reasonably estimable and, accordingly, has not recorded a loss contingency for this matter. | |
Adams v. Dole Food Company et al | |
On approximately November 23, 2007, AMVAC was served with a suit filed by two former Hawaiian pineapple workers and their spouses, alleging that they had testicular cancer due to DBCP exposure: Adams v. Dole Food Company et al in the First Circuit for the State of Hawaii. The complaint was filed on June 29, 2007 and names Dole Food Company, Standard Fruit and Steamship Company, Dole Fresh Food, Pineapple Growers Association, AMVAC, Shell Oil Company, Dow Chemical Company and Occidental Chemical Corporation. Plaintiff Mark Adams alleges he was exposed to DBCP in 1974 and 1975 while working on Dole’s plantation on Oahu. Plaintiff Nelson Ng alleges he was exposed between 1971 and 1973 while working in Lanai City, Lanai. AMVAC answered the complaint on or about December 14, 2007. While little discovery has taken place, AMVAC denies that any of its product could have been used at the times and locations alleged by these plaintiffs. Dole Food Company was dismissed on the basis of the exclusive remedy of worker’s compensation benefits, as it was the employer of plaintiffs. In October 2014, the appellate court upheld the dismissal but granted plaintiffs the right to amend its complaint. However, in light of the fact that Plaintiffs’ request (made in November 2012) to substitute new counsel was denied, until new counsel is properly substituted, Plaintiffs cannot proceed further with the matter. The Company does not believe that a loss is either probable or reasonably estimable and has not recorded a loss contingency for this matter. | |
Nicaraguan Matters | |
A review of court filings in Chinandega, Nicaragua, has found 85 suits alleging personal injury allegedly due to exposure to DBCP and involving approximately 3,592 plaintiffs have been filed against AMVAC and other parties. Of these cases, only two— Flavio Apolinar Castillo et al. v. AMVAC Chemical Corporation et al., No. 535/04 and Luis Cristobal Martinez Suazo et al. v. AMVAC Chemical Corporation et al., No. 679/04Castillo and Suazo, (which were filed in 2004 and involve 15 banana workers) have been served on AMVAC. All but one of the suits in Nicaragua have been filed pursuant to Special Law 364, an October 2000 Nicaraguan statute that contains substantive and procedural provisions that Nicaragua’s Attorney General previously expressed as unconstitutional. Each of the Nicaraguan plaintiffs’ claims $1,000 in compensatory damages and $5,000 in punitive damages. In all of these cases, AMVAC is a joint defendant with Dow Chemical Company and Dole Food Company, Inc. AMVAC contends that the Nicaragua courts do not have jurisdiction over it and that Public Law 364 violates international due process of law. AMVAC has objected to personal jurisdiction and demanded under Law 364 that the claims be litigated in the United States. In 2007, the court denied these objections, and AMVAC appealed the denial. It is not presently known as to how many of these plaintiffs actually claim exposure to DBCP at the time AMVAC’s product was allegedly used nor is there any verification of the claimed injuries. Further, to date, plaintiffs have not had success in enforcing Nicaraguan judgments against domestic companies before U.S. courts. Nor have Nicaraguan claimants had success in bringing actions domestically, as one U.S. court has dismissed such an action on its own motion after finding pervasive fraud on behalf of claimants and their counsel. With respect to the pending Nicaraguan matters, AMVAC intends to defend any claim vigorously. Furthermore, the Company does not believe that a loss is either probable or reasonably estimable and has not recorded a loss contingency for these matters. | |
B. Other Matters | |
Brazilian Citation. On or about October 5, 2009, IBAMA (the Brazilian equivalent of the U.S. EPA) served AMVAC Brazil with a Notice of Violation alleging that two lots of Granutox 150 (formulated product having phorate as the active ingredient) stored at BASF S.A. (AMVAC’s exclusive distributor in Brazil) and FMC Quimica do Brasil Ltda. (which formulates end-use product in that country) were not in compliance with the end-use registration on file with IBAMA. Specifically, IBAMA alleged that the color of the lots (gray) was inconsistent with the description in IBAMA’s files (pink). IBAMA also indicated an intention to assess a fine of approximately $200 against AMVAC B. The Company has challenged the citation, for among other reasons, on the ground that the change in color has to do with the removal of a coloring component and that such removal poses no environmental or toxicity risk. IBAMA has denied AMVAC B’s first and second appeals. Accordingly, on November 20, 2014, the Company paid $168 in full settlement of this matter. Thus, this matter is concluded. | |
Sanchez v. Agro Logistics. AMVAC has been named as one of 27 defendants in an action entitled Sanchez v. Agro Logistic Systems, Inc. et al which was filed on April 14, 2014 with the Superior Court for the State of California for the County of Los Angeles as case number BC542612. In this matter, two individuals seek unspecified damages from defendants for negligence, strict liability and other causes of action allegedly leading to physical injury (myelogenous leukemia) arising from exposure to dozens of registered products over the course of their employment as laborers from 1989 through 2012. We believe that the claims have no merit, intend to defend the matter vigorously, and has entered into a joint defense arrangement with certain other defendants. A fair amount of discovery, including plaintiff’s deposition, has been completed. Plaintiffs are unable to confirm whether they used or were exposed to any of the Company’s products. The Company will continue to defend this matter and does not believe that a loss is either probable or reasonably estimable. Accordingly, the Company has not recorded a reserve for this matter. | |
Galvan v. AMVAC. On April 7, 2014, an action entitled Graciela Galvan v. AMVAC Chemical Corp. was filed with the Superior Court for the State of California for the County of Orange as case number 00716103CXC. This is a putative class action brought under California Labor Code Section 2698 under which claimant, an inactive employee currently on leave, seeks civil penalties on behalf of herself and other allegedly “similarly aggrieved employees” under various Labor Code sections relating to overtime compensation, minimum wages, meal periods, and rest periods among other things. The Company believes that the claims have no merit and intends to defend the matter vigorously. Limited discovery has taken place since the filing of the action; however, the deposition of plaintiff has yet to be taken. At this stage in the proceedings, it is too early to determine whether a loss is probable or reasonably estimable; accordingly, the Company has not recorded a reserve for the matter. |
Employee_Deferred_Compensation
Employee Deferred Compensation Plan and Employee Stock Purchase Plan | 12 Months Ended |
Dec. 31, 2014 | |
Employee Deferred Compensation Plan and Employee Stock Purchase Plan | (5) Employee Deferred Compensation Plan and Employee Stock Purchase Plan |
The Company maintains a deferred compensation plan (“the Plan”) for all eligible employees. The Plan calls for each eligible employee, at the employee’s election, to participate in an income deferral arrangement under Internal Revenue Code Section 401(k). The plan allows eligible employees to make contributions which cannot exceed 100% of compensation, or the annual dollar limit set by the Internal Revenue Code. The Company matches the first 5% of employee contributions. The Company’s contributions to the Plan amounted to $1,445, $1,330 and $982 in 2014, 2013 and 2012, respectively. | |
During 2001, the Company’s Board of Directors adopted the AVD Employee Stock Purchase Plan (the “Plan”). The Plan allows eligible employees to purchase shares of common stock through payroll deductions at a discounted price. An aggregate of approximately 1,000,000 shares of the Company’s Common Stock, par value $.10 per share (subject to adjustment for any stock dividend, stock split or other relevant changes in the Company’s capitalization) may be sold pursuant to the Plan, which is intended to qualify under Section 423 of the Internal Revenue Code. The Plan allows for purchases in a series of offering periods, each six months in duration, with new offering periods (other than the initial offering period) commencing on January 1 and July 1 of each year. The initial offering period commenced on July 1, 2001. Pursuant to action taken by the Company’s Board of Directors in December 10, 2010, the expiration of the Plan was extended to December 31, 2013. The Plan was amended and restated on June 30, 2011 following shareholders’ ratification of the extended expiration date. In December 2013, the Board of Directors resolved to extend the expiration date of the Plan five years, that is, until December 31, 2018. Under the Plan, as amended as of June 30, 2011, 995,000 shares of the Company’s common stock were authorized. As of December 31, 2014 and 2013, 854,007 and 901,220 shares remained available under the plan, respectively. | |
Shares of common stock purchased through the Plan in 2014, 2013 and 2012 were 47,213, 27,923 and 40,116, respectively. |
Major_Customers_and_Export_Sal
Major Customers and Export Sales | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Major Customers and Export Sales | (6) Major Customers and Export Sales | ||||||||||||
In 2014, there were three companies that accounted for 20%, 11% and 8% of the Company’s consolidated sales. In 2013, there were three companies that accounted for 17%, 13%, and 8% of the Company’s consolidated sales. In 2012, there were three companies that accounted for 19%, 10% and 8% of the Company’s consolidated sales. | |||||||||||||
The Company primarily sells its products to large distributors, buying cooperatives and groups and extends credit based on an evaluation of the customer’s financial condition. The Company had three significant customers who each accounted for approximately 21%, 12% and 10% of the Company’s receivables as of December 31, 2014. The Company had three significant customers who each accounted for approximately 14%, 10% and 8% of the Company’s receivables as of December 31, 2013 and 20%, 11% and 7% of the Company’s receivables as of December 31, 2012. The Company has long-standing relationships with its customers and the Company considers the credit risk to be low. | |||||||||||||
Worldwide export sales for 2014, 2013 and 2012 were as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Mexico | $ | 14,601 | $ | 15,661 | $ | 17,980 | |||||||
South & Central America | 16,585 | 15,491 | 16,374 | ||||||||||
Europe | 13,249 | 12,942 | 9,744 | ||||||||||
Asia | 7,683 | 8,129 | 7,308 | ||||||||||
Africa | 9,310 | 8,322 | 7,229 | ||||||||||
Australia | 4,202 | 2,692 | 4,444 | ||||||||||
Canada | 4,910 | 3,976 | 4,320 | ||||||||||
Middle East | 3,166 | 2,500 | 2,495 | ||||||||||
Other | — | 59 | 15 | ||||||||||
$ | 73,706 | $ | 69,772 | $ | 69,909 | ||||||||
Royalties
Royalties | 12 Months Ended |
Dec. 31, 2014 | |
Royalties | (7) Royalties |
The Company entered into a licensing agreement in December 2012 that requires a minimum annual royalty payable through 2022. In addition, the Company had other royalty agreements in place that extended through December 2013. Those agreements related to the acquisition of certain products as well as various licensing arrangements, none of which contained a minimum royalty provision. Certain royalty agreements contain confidentiality covenants. Royalty expenses were $33, $116 and $38 for 2014, 2013 and 2012, respectively. |
Product_Acquisitions
Product Acquisitions | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Product Acquisitions | (8) Product Acquisitions | ||||||||||||||||||||||||
All product acquisitions made after January 1, 2009 have been accounted for pursuant to FASB ASC 805. | |||||||||||||||||||||||||
The following schedule represents intangible assets recognized in connection with product acquisitions (See description of Business, Basis of Consolidation and Significant Accounting Policies for the Company’s accounting policy regarding intangible assets): | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Intangible assets at December 31, 2011 | $ | 116,189 | |||||||||||||||||||||||
Acquisitions during fiscal 2012 | 3,473 | ||||||||||||||||||||||||
Impact of movement in exchange rates | (118 | ) | |||||||||||||||||||||||
Amortization expense | (6,023 | ) | |||||||||||||||||||||||
Intangible assets at December 31, 2012 | $ | 113,521 | |||||||||||||||||||||||
Impact of movement in exchange rates | (162 | ) | |||||||||||||||||||||||
Amortization expense | (6,352 | ) | |||||||||||||||||||||||
Intangible assets at December 31, 2013 | $ | 107,007 | |||||||||||||||||||||||
Write off during fiscal 2014 | (319 | ) | |||||||||||||||||||||||
Impact of movement in exchange rates | (86 | ) | |||||||||||||||||||||||
Amortization expense | (6,391 | ) | |||||||||||||||||||||||
Intangible assets at December 31, 2014 | $ | 100,211 | |||||||||||||||||||||||
The following schedule represents the gross carrying amount and accumulated amortization of the intangible assets. Product rights are amortized over their expected useful lives of 25 years. Customer lists are amortized over their expected useful lives of ten years, and trademarks are amortized over their expected useful lives of 25 years. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
$000’s | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Amortization | Value | Amortization | Value | ||||||||||||||||||||||
Product Rights | $ | 138,466 | $ | 49,733 | $ | 88,733 | $ | 139,094 | $ | 44,254 | $ | 94,840 | |||||||||||||
Customer Lists | 1,091 | 437 | 654 | 1,091 | 328 | 763 | |||||||||||||||||||
Trademarks | 12,941 | 2,117 | 10,824 | 12,941 | 1,537 | 11,404 | |||||||||||||||||||
Total Intangibles | $ | 152,498 | $ | 52,287 | $ | 100,211 | $ | 153,126 | $ | 46,119 | $ | 107,007 | |||||||||||||
The following schedule represents future amortization charges related to intangible assets: | |||||||||||||||||||||||||
Year ending December 31, | |||||||||||||||||||||||||
2015 | $ | 6,371 | |||||||||||||||||||||||
2016 | 6,371 | ||||||||||||||||||||||||
2017 | 6,371 | ||||||||||||||||||||||||
2018 | 6,371 | ||||||||||||||||||||||||
2019 | 6,371 | ||||||||||||||||||||||||
Thereafter | 68,356 | ||||||||||||||||||||||||
$ | 100,211 | ||||||||||||||||||||||||
The following schedule represents the Company’s obligations under product acquisitions and licensing agreements: | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Obligations under acquisition agreements at December 31, 2011 | $ | 17,624 | |||||||||||||||||||||||
Additional obligations acquired | 1,073 | ||||||||||||||||||||||||
Adjustment to deferred liabilities | (216 | ) | |||||||||||||||||||||||
FX impact | 48 | ||||||||||||||||||||||||
Amortization of discounted liabilities | 818 | ||||||||||||||||||||||||
Payments on existing obligations | (7,447 | ) | |||||||||||||||||||||||
Obligations under acquisition agreements at December 31, 2012 | $ | 11,900 | |||||||||||||||||||||||
Adjustment to deferred liabilities | (297 | ) | |||||||||||||||||||||||
FX impact | (1 | ) | |||||||||||||||||||||||
Amortization of discounted liabilities | 174 | ||||||||||||||||||||||||
Payments on existing obligations | (7,890 | ) | |||||||||||||||||||||||
Obligations under acquisition agreements at December 31, 2013 | $ | 3,886 | |||||||||||||||||||||||
Adjustment to deferred liabilities | (32 | ) | |||||||||||||||||||||||
Amortization of discounted liabilities | 324 | ||||||||||||||||||||||||
Payments on existing obligations | (1,686 | ) | |||||||||||||||||||||||
Obligations under acquisition agreements at December 31, 2014 | $ | 2,492 | |||||||||||||||||||||||
During 2014, the Company remeasured the fair value of the earn out liabilities related to the acquisitions completed in the first quarter of 2010. Based on the remeasurement, the fair value was reduced by $32. The fair value change had the effect of reducing operating expenses by $32. | |||||||||||||||||||||||||
During 2013, the Company remeasured the fair value of the earn out liabilities related to the acquisitions completed in the first quarter of 2010. Based on the remeasurement, the fair value was reduced by $297. The fair value change had the effect of reducing operating expenses by $297. | |||||||||||||||||||||||||
During 2012, the Company remeasured the fair value of the earn out liabilities related to the acquisitions completed in the first quarter of 2010. Based on the remeasurement, the fair value was reduced by $216. The fair value change had the effect of reducing cost of sales by $0 and operating expenses by $216. | |||||||||||||||||||||||||
As of December 31, 2014, the $2,492 in remaining obligations under product acquisitions and licensing agreements is included in other liabilities. |
Commitments
Commitments | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments | (9) Commitments | ||||
The Company has various lease agreements for offices as well as long-term ground leases for its facilities at Axis, AL, Hannibal, MO and Marsing, ID. The office leases contain provisions to pass through to the Company its pro-rata share of certain of the building’s operating expenses. The long-term ground lease at Axis, AL is for twenty years (commencing May 2001) with up to five automatic renewals of three years each for a total of thirty-five years. The long-term ground lease at Hannibal, MO is for a period of 20 years (commencing December 2007) with automatic one year extensions thereafter, subject to termination with a twelve-month notice. The long-term ground lease at Marsing is for a period of 25 years (commencing in March 2008). Rent expense for the years ended December 31, 2014, 2013 and 2012 was $1,012, $939 and $727. Future minimum lease payments under the terms of the leases are as follows: | |||||
Year ending December 31, | |||||
2015 | $ | 868 | |||
2016 | 433 | ||||
2017 | 135 | ||||
2018 | 135 | ||||
2019 | 135 | ||||
Thereafter | 1,035 | ||||
$ | 2,741 | ||||
Research_and_Development
Research and Development | 12 Months Ended |
Dec. 31, 2014 | |
Research and Development | (10) Research and Development |
Research and development expenses which are included in operating expenses were $8,591, $8,604 and $7,648 for the years ended December 31, 2014, 2013 and 2012. |
Stock_Options
Stock Options | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stock Options | (11) Stock Options | ||||||||||||||||||||
Incentive Stock Option Plans (“ISOP”) | |||||||||||||||||||||
Under the terms of the Company’s ISOP, under which options to purchase 4,296,000 shares of common stock can be issued, all employees are eligible to receive non-assignable and non-transferable options to purchase shares. The exercise price of any option may not be less than the fair market value of the shares on the date of grant; provided, however, that the exercise price of any option granted to an eligible employee owning more than 10% of the outstanding common stock may not be less than 110% of the fair market value of the shares underlying such option on the date of grant. No options granted may be exercisable more than ten years after the date of grant. | |||||||||||||||||||||
In 2014, the Company granted incentive stock options to purchase 277,025 shares of common stock to employees. Of these options, 26,483 option shares vest on each of the first, second, and third anniversaries of the date of grant. All options granted are non-assignable and non-transferable. In 2013 and 2012, no options were granted. | |||||||||||||||||||||
Nonstatutory Stock Options (“NSSO”) | |||||||||||||||||||||
The Company did not grant any non-statutory stock options during the three years ended December 31, 2014. | |||||||||||||||||||||
Option activity within each plan is as follows: | |||||||||||||||||||||
Incentive | Weighted Average | Exercisable | |||||||||||||||||||
Stock Option | Price Per Share | Weighted | |||||||||||||||||||
Plans | Average | ||||||||||||||||||||
Price | |||||||||||||||||||||
Per Share | |||||||||||||||||||||
Balance outstanding, December 31, 2011 | 1,388,514 | $ | 7.44 | $ | 7.26 | ||||||||||||||||
Options exercised, range from $3.67-$14.99 | (659,733 | ) | 7.05 | ||||||||||||||||||
Options expired | (23,436 | ) | 10.41 | ||||||||||||||||||
Balance outstanding, December 31, 2012 | 705,345 | $ | 7.7 | $ | 7.95 | ||||||||||||||||
Options exercised, $7.50 | (126,149 | ) | 7.5 | ||||||||||||||||||
Options expired | (18,167 | ) | 7.5 | ||||||||||||||||||
Balance outstanding, December 31, 2013 | 561,029 | $ | 7.76 | $ | 7.7 | ||||||||||||||||
Options granted, $11.49 | 277,025 | 11.49 | |||||||||||||||||||
Options exercised, $7.50 | (113,150 | ) | 7.5 | ||||||||||||||||||
Balance outstanding, December 31, 2014 | 724,904 | $ | 9.22 | $ | 7.82 | ||||||||||||||||
Information relating to stock options at December 31, 2014 summarized by exercise price is as follows: | |||||||||||||||||||||
Outstanding Weighted Average | Exercisable Weighted | ||||||||||||||||||||
Average | |||||||||||||||||||||
Exercise Price Per Share | Shares | Remaining | Exercise | Shares | Exercise | ||||||||||||||||
Life | Price | Price | |||||||||||||||||||
(Months) | |||||||||||||||||||||
Incentive Stock Option Plan: | |||||||||||||||||||||
$7.50 | 421,200 | 71 | $ | 7.5 | 421,200 | $ | 7.5 | ||||||||||||||
$11.32-$14.75 | 303,704 | 115 | $ | 11.61 | 26,679 | $ | 12.9 | ||||||||||||||
724,904 | $ | 9.22 | 447,879 | $ | 7.82 | ||||||||||||||||
The weighted average exercise prices for options granted and exercisable and the weighted average remaining contractual life for options outstanding as of December 31, 2013 and 2014 was as follows: | |||||||||||||||||||||
Number | Weighted | Weighted | Intrinsic | ||||||||||||||||||
of | Average | Average | Value | ||||||||||||||||||
Shares | Exercise | Remaining | (thousands) | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
(Months) | |||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||
Incentive Stock Option Plans: | |||||||||||||||||||||
Outstanding | 561,029 | $ | 7.76 | 83 | $ | 9,276 | |||||||||||||||
Expected to Vest | 560,972 | $ | 7.76 | 83 | $ | 9,275 | |||||||||||||||
Exercisable | 554,362 | $ | 7.7 | 83 | $ | 9,196 | |||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||
Incentive Stock Option Plans: | |||||||||||||||||||||
Outstanding | 724,904 | $ | 9.22 | 90 | $ | 1,774 | |||||||||||||||
Expected to Vest | 713,172 | $ | 9.19 | 89 | $ | 1,773 | |||||||||||||||
Exercisable | 447,879 | $ | 7.82 | 71 | $ | 1,738 | |||||||||||||||
The total intrinsic value of options exercised during 2014, 2013 and 2012 was $1,480, $2,365, and $15,910, respectively. Cash received from stock options exercised during 2014, 2013, and 2012 was $849, $946, and $2,996, respectively. Upon exercise in 2012, the Company also received 49,638 shares in payment for the options which were valued on the day of exercise at $1,651. | |||||||||||||||||||||
Restricted Stock Grants | |||||||||||||||||||||
During 2014, the Company issued a total of 240,724 shares of common and restricted stock to certain employees and non-executive board members. Vesting ranges from immediate to three years from the date of grant. The fair values of the grants range from $13.84 to $14.92 per share based on the publicly traded share prices. The total fair value of $3,566 is being recognized over the related service periods. During 2014, 20,772 shares of common stock granted to employees were forfeited. | |||||||||||||||||||||
During 2013, the Company issued a total of 162,336 shares of common and restricted stock to certain employees and non-executive board members. Vesting ranges from immediate to three years from the date of grant. The fair values of the grants range from $23.43 to $31.83 per share based on the publicly traded share prices. The total fair value of $5,018 is being recognized over the related service periods. During 2013, 11,999 shares of common stock granted to employees were forfeited. | |||||||||||||||||||||
During 2012, the Company issued a total of 248,536 shares of common and restricted stock to certain employees and non-executive board members. Vesting ranges from immediate to three years from the date of grant. The fair values of the grants range from $13.34 to $34.04 per share based on the publicly traded share prices. The total fair value of $5,346 is being recognized over the related service periods. During 2012, 1,367 shares of common stock granted to employees were forfeited. | |||||||||||||||||||||
A status summary of non-vested shares as of December 31, 2014, is presented below: | |||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||
of | Average | ||||||||||||||||||||
Shares | Grant-Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested shares at January 1, 2014 | 376,702 | $ | 24.85 | ||||||||||||||||||
Granted | 240,724 | $ | 14.81 | ||||||||||||||||||
Vested | (35,812 | ) | $ | 14.74 | |||||||||||||||||
Forfeited | (20,772 | ) | $ | 17.91 | |||||||||||||||||
Nonvested shares at December 31, 2014 | 560,842 | $ | 21.44 | ||||||||||||||||||
Performance Based Stock Grants | |||||||||||||||||||||
During 2014, the Company granted a total of 79,270 performance based shares that will cliff vest on May 23, 2017, provided that recipient is continuously employed by the Company during the vesting period. Of these performance based shares, 80% are based upon financial performance of the Company, specifically, an earnings before interest and tax (“EBIT”) goal weighted at 50% and a net sales goal weighted at 30% for the period commencing April 1, 2014 and ending December 31, 2016; the remaining 20% of performance based shares are based upon AVD stock price appreciation (shareholder return) over the same performance measurement period. The net sales and EBIT goal measures the relative growth of the Company’s net sales and EBIT for the performance measurement period, as compared to the median growth of net sales and EBIT for an identified peer group. The shareholder return goal measures the relative growth of the fair market value of the Company’s stock price over the performance measurement period, as compared to that of the Russell 2000 Index and the median fair market value of the common stock of the comparator companies. All parts of these awards vest in three years, but are subject to reduction to a minimum (or even zero) for meeting less than the targeted performance and to increase to a maximum of 200% for meeting in excess of the targeted performance. | |||||||||||||||||||||
The performance based shares related to net sales and EBIT were average fair valued at $14.92 per share. The fair value was determined by using the publicly traded share price as of the date of grant. The performance based shares related to AVD stock price were average fair valued at $12.85 per share. The fair value was determined by using the Monte Carlo valuation method. The Company is recognizing as expense the value of these shares over the required service period of three years. | |||||||||||||||||||||
During 2013, the Company granted a total of 24,637 performance based shares that will cliff vest after three years of service. Of these performance based shares, 80% are based upon net income and net sales for the period commencing April 1, 2013 and ending December 31, 2015; the remaining 20% of performance based shares are based upon the Company’s stock price appreciation over the course of the period commencing June 6, 2013 and ending on December 31, 2015. Both parts of these awards vest in three years, but are subject to reduction to a minimum (or even zero) for meeting less than the targeted performance and to increase to a maximum of 200% for meeting in excess of the targeted performance. | |||||||||||||||||||||
The performance based shares related to net income and net sales have an average fair value of $30.13 per share. The fair value was determined by using the publicly traded share price as of the date of grant. The performance based shares related to the Company’s stock price have an average fair value of $15.31 per share. The fair value was determined by using the Monte Carlo valuation method. For awards with performance conditions, the Company recognizes share-based compensation cost on a straight-line basis for each performance criteria over the implied service period when the Company believes it is probable that the performance targets, as defined in the agreements, will be achieved. | |||||||||||||||||||||
During 2014 and 2013, the Company recognized stock-based compensation expense related to performance based shares of $168 and $90, respectively. There were no performance based shares issued by the Company prior to those issued during the quarter ended June 30, 2013. | |||||||||||||||||||||
As of December 31, 2014, the Company had approximately $1,249 of unamortized stock-based compensation expenses related to unvested performance based shares. This amount will be recognized over the weighted-average period of 2.1 years. This projected expense will change if any performance based shares are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures. | |||||||||||||||||||||
As of December 31, 2013, the Company had approximately $564 of unamortized stock-based compensation expenses related to unvested performance based shares. This amount will be recognized over the weighted-average period of 2.4 years. This projected expense will change if any performance based shares are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures. | |||||||||||||||||||||
A status summary of non-vested shares as of December 31, 2014, is presented below: | |||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||
of | Average | ||||||||||||||||||||
Shares | Grant-Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested shares at January 1, 2014 | 24,637 | $ | 28.43 | ||||||||||||||||||
Granted | 79,270 | $ | 14.51 | ||||||||||||||||||
Nonvested shares at December 31, 2014 | 103,907 | $ | 17.81 | ||||||||||||||||||
Performance Incentive Stock Option Plan | |||||||||||||||||||||
During 2014, the Company granted performance incentive stock options to purchase 107,689 shares of common stock to employees. Of these performance based stock options, 80% are based upon financial performance of the Company, specifically, an earnings before interest and tax (“EBIT”) goal weighted at 50% and a net sales goal weighted at 30% for the period commencing January 1, 2015 and ending December 31, 2017; the remaining 20% of performance based shares are based upon AVD stock price appreciation (shareholder return) over the same performance measurement period. The net sales and EBIT goal measures the relative growth of the Company’s net sales and EBIT for the performance measurement period, as compared to the median growth of net sales and EBIT for an identified peer group. The shareholder return goal measures the relative growth of the fair market value of the Company’s stock price over the performance measurement period, as compared to that of the Russell 2000 Index and the median fair market value of the common stock of the comparator companies. All parts of these options vest in three years, but are subject to reduction to a minimum (or even zero) for meeting less than the targeted performance and to increase to a maximum of 200% for meeting in excess of the targeted performance. There were no performance based stock options issued by the Company prior to those issued during 2014. | |||||||||||||||||||||
Performance option activity is as follows: | |||||||||||||||||||||
Incentive | Weighted Average | Exercisable | |||||||||||||||||||
Stock Option | Price Per Share | Weighted | |||||||||||||||||||
Plans | Average | ||||||||||||||||||||
Price | |||||||||||||||||||||
Per Share | |||||||||||||||||||||
Balance outstanding, December 31, 2013 | — | $ | — | $ | — | ||||||||||||||||
Options granted, $11.49 | 107,689 | 11.49 | |||||||||||||||||||
Balance outstanding, December 31, 2014 | 107,689 | $ | 11.49 | $ | — | ||||||||||||||||
Information relating to performance stock options at December 31, 2014 summarized by exercise price is as follows: | |||||||||||||||||||||
Outstanding Weighted Average | Exercisable Weighted | ||||||||||||||||||||
Average | |||||||||||||||||||||
Exercise Price Per Share | Shares | Remaining | Exercise | Shares | Exercise | ||||||||||||||||
Life | Price | Price | |||||||||||||||||||
(Months) | |||||||||||||||||||||
Performance Incentive Stock Option Plan: | |||||||||||||||||||||
$11.49 | 107,689 | 36 | $ | 11.49 | — | $ | — | ||||||||||||||
107,689 | $ | 11.49 | — | $ | — | ||||||||||||||||
The weighted average exercise prices for performance options granted and exercisable and the weighted average remaining contractual life for performance options outstanding as of December 31, 2014 was as follows: | |||||||||||||||||||||
Number | Weighted | Weighted | Intrinsic | ||||||||||||||||||
of | Average | Average | Value | ||||||||||||||||||
Shares | Exercise | Remaining | (thousands) | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
(Months) | |||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||
Performance Incentive Stock Option Plans: | |||||||||||||||||||||
Outstanding | 107,689 | $ | 11.49 | 36 | $ | 14 | |||||||||||||||
Expected to Vest | 107,689 | $ | 11.49 | 36 | $ | 14 | |||||||||||||||
Exercisable | — | $ | — | — | $ | — |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Loss | (12) Accumulated Other Comprehensive Loss | ||||||||||||
The following table lists the beginning balance, annual activity and ending balance of each component of accumulated other comprehensive income: | |||||||||||||
Interest | FX | Total | |||||||||||
Rate | Translation | ||||||||||||
Swap | |||||||||||||
Balance, December 31, 2011 | $ | (886 | ) | $ | (1,364 | ) | $ | (2,250 | ) | ||||
Other comprehensive income/(loss) before reclassifications | (472 | ) | 330 | (142 | ) | ||||||||
Amounts reclassified from AOCI | 721 | — | 721 | ||||||||||
Tax effect | (91 | ) | — | (91 | ) | ||||||||
Balance, December 31, 2012 | $ | (728 | ) | $ | (1,034 | ) | $ | (1,762 | ) | ||||
Other comprehensive income/(loss) before reclassifications | (75 | ) | 326 | 251 | |||||||||
Amounts reclassified from AOCI | 712 | — | 712 | ||||||||||
Tax effect | (249 | ) | — | (249 | ) | ||||||||
Balance, December 31, 2013 | $ | (340 | ) | $ | (708 | ) | $ | (1,048 | ) | ||||
Other comprehensive income/(loss) before reclassifications | (30 | ) | (1,262 | ) | (1,292 | ) | |||||||
Amounts reclassified from AOCI | 594 | — | 594 | ||||||||||
Tax effect | (224 | ) | — | (224 | ) | ||||||||
Balance, December 31, 2014 | $ | — | $ | (1,970 | ) | $ | (1,970 | ) | |||||
Equity_Method_Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2014 | |
Equity Method Investment | (13) Equity Method Investment |
On March 25, 2013, the Company made a $3,687 equity investment in TyraTech Inc. (“TyraTech”), a Delaware corporation that specializes in developing, marketing and selling pesticide products containing essential oils and other natural ingredients. In February 2014, TyraTech issued 37,391,763 shares, raising approximately £1.87 ($3.1) million. In July 2014 TyraTech issued a further 50,000,000 shares and raised approximately £3.5 ($5.9) million. Due to the share issuance in both periods, the Company recognized a total gain of $954 from the dilution of the Company’s ownership position as required by ASC 323. In October 2014, the Company exercised warrants in the amount of $500 and purchased 6,155,000 shares in TyraTech. As of December 31, 2014, the Company’s ownership position in TyraTech was approximately 21.18%. The Company utilizes the equity method of accounting with respect to this investment. As a result, our net income includes earnings (losses) from equity method investments, which represents our proportionate share of TyraTech’s estimated net earnings (losses) for the period from the time of the investment to the end of the accounting period. For the year ended December 31, 2014, the Company recognized a loss of $983, as compared to $986 in 2013, as a result of the Company’s ownership position in TyraTech. | |
The Company’s investment in TyraTech is included in other assets on the balance sheet. At December 31, 2014, the carrying value of the Company’s investment in TyraTech was $3,172 and the quoted market value was $3,555. TyraTech’s shares trade on the AIM market of the London Stock Exchange under the trading symbol ‘TYR’. | |
Quarterly_DataUnaudited
Quarterly Data-Unaudited | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Data-Unaudited | (14) Quarterly Data—Unaudited | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
Quarterly Data—2014 | |||||||||||||||||
Net sales | $ | 81,095 | $ | 68,313 | $ | 71,635 | $ | 77,591 | |||||||||
Gross profit | 28,905 | 26,060 | 28,293 | 31,238 | |||||||||||||
Net income attributable to American Vanguard | 2,159 | 145 | 732 | 1,805 | |||||||||||||
Basic net income per share | 0.08 | 0.01 | 0.03 | 0.06 | |||||||||||||
Diluted net income per share | 0.07 | 0.01 | 0.03 | 0.06 | |||||||||||||
Quarterly Data—2013 | |||||||||||||||||
Net sales | $ | 121,537 | $ | 86,761 | $ | 97,201 | $ | 75,522 | |||||||||
Gross profit | 53,781 | 42,066 | 43,159 | 32,341 | |||||||||||||
Net income attributable to American Vanguard | 16,915 | 8,386 | 8,870 | 278 | |||||||||||||
Basic net income per share | 0.6 | 0.29 | 0.32 | 0.01 | |||||||||||||
Diluted net income per share | 0.59 | 0.29 | 0.3 | 0.01 | |||||||||||||
Note: Totals may not agree with full year amounts due to rounding and separate calculations each quarter. |
Description_of_Business_Basis_1
Description of Business, Basis of Consolidation and Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Cost of Sales | Cost of Sales—In addition to normal cost centers (i.e., direct labor, raw materials) included in cost of sales, the Company also includes such cost centers as Health and Safety, Environmental, Maintenance and Quality Control in cost of sales. | ||||||||||||||||||||||||||||
Fair Value of Equity Investment | Fair Value of Equity Investment—The Company utilizes the equity method of accounting with respect to its investment in TyraTech Inc. (“TyraTech”), a Delaware corporation that specializes in developing, marketing and selling pesticide products containing essential oils and other natural ingredients. In February 2014, TyraTech issued 37,391,763 shares, raising approximately £1.87 ($3.1) million. In July 2014, TyraTech issued a further 50,000,000 shares and raised approximately £3.5 ($5.9) million. Due to the share issuance in both periods, the Company recognized a total gain of $954 from the dilution of the Company’s ownership position as required by ASC 323. In October 2014, the Company exercised warrants in the amount of $500 and purchased 6,155,000 shares in TyraTech. As of December 31, 2014, the Company’s ownership position in TyraTech was approximately 21.18%. At December 31, 2014, the carrying value of the Company’s investment in TyraTech was $3,172 and the quoted market value based on TyraTech’s share price (Level 1 input) was $3,555. TyraTech’s shares trade on the AIM market of the London Stock Exchange under the trading symbol ‘TYR’. The Company’s equity investment is included in other assets on the consolidated balance sheet. | ||||||||||||||||||||||||||||
Derivative Financial Instruments and Hedge Activities | Derivative financial instruments and hedge activities—In accordance with FASB ASC 815, Derivatives and Hedging, the Company recognizes all derivative instruments as either other assets or other liabilities at fair value on the balance sheet. In accordance with the hierarchy contained in FASB ASC 820, Fair Value Measurements, the Company calculated fair value using observable inputs other than Level 1 quoted prices (Level 2). During 2014, the Company had in place one interest rate swap contract that ended on December 31, 2014. While in place, the interest rate swap contract was accounted for under FASB ASC 815 as a cash flow hedge. The effective portion of the gains or losses on the interest rate swap are reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. As a result of the termination of the swap contract (as mentioned above), no balances remain in other comprehensive income at December 31, 2014. Losses in other comprehensive income that were expected to be reclassified to earnings in the coming 12 months were $564 and $689 at the end of December 31, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||
The following tables illustrate the impact of derivatives on the Company’s statement of operations for the year ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Financial Performance | |||||||||||||||||||||||||||||
For the Period Ended December 31 | |||||||||||||||||||||||||||||
Derivatives in ASC 815 Cash Flow | Amount of Gain or | Location of Gain or | Amount of Gain or | Location of Gain or | Amount of Gain or | ||||||||||||||||||||||||
(Loss) Recognized in | (Loss) Reclassified | (Loss) Reclassified | (Loss) Recognized in | (Loss) Recognized | |||||||||||||||||||||||||
OCI on Derivative | from Accumulated | from Accumulated | Income on Derivative | in Income on | |||||||||||||||||||||||||
(Effective Portion) | OCI into Income | OCI into Income | Derivative | ||||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||||||
Hedging Relationships | 2014 | 2013 | (Effective Portion) | 2014 | 2013 | (Ineffective Portion) | 2014 | 2013 | |||||||||||||||||||||
Interest rate contracts | $ | (30 | ) | $ | (75 | ) | Interest expense | $ | (594 | ) | $ | (712 | ) | Interest expense | $ | (3 | ) | $ | (1 | ) | |||||||||
Total | $ | (30 | ) | $ | (75 | ) | $ | (594 | ) | $ | (712 | ) | $ | (3 | ) | $ | (1 | ) | |||||||||||
The counterparty to the interest rate derivative financial instrument that had been held by the Company during 2014 is Bank of the West, the Company’s primary bank. Pledged cash collateral was not required under the interest rate swap contract. There are no derivative financial instruments at December 31, 2014. | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments—The carrying values of cash, receivables and accounts payable approximate their fair values because of the short maturity of these instruments. The fair value of the Company’s long-term debt and note payable to our lender group is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. Such fair value approximates the respective carrying values of the Company’s long-term debt and note payable to bank. | ||||||||||||||||||||||||||||
The Company measures fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following: | |||||||||||||||||||||||||||||
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs. | |||||||||||||||||||||||||||||
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||||||||
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |||||||||||||||||||||||||||||
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk in the assessment of fair value. | |||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
Using Input Type | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||||||
Liability: | |||||||||||||||||||||||||||||
Interest rate derivative financial instruments (1) | $ | — | $ | 564 | $ | — | |||||||||||||||||||||||
-1 | Includes accrued interest expense. | ||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets—The primary identifiable intangible assets of the Company relate to assets associated with its product acquisitions. The Company adopted the provisions of FASB ASC 350, under which identifiable intangibles with finite lives are amortized and those with indefinite lives are not amortized. The estimated useful life of an identifiable intangible asset to the Company is based upon a number of factors including the effects of demand, competition, and expected changes in the marketability of the Company’s products. The Company re-evaluates whether these intangible assets are impaired on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets. The impairment test for identifiable intangible assets not subject to amortization consists of either a qualitative assessment or a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss, if any, is recognized for the amount by which the carrying value exceeds the fair value of the asset. Fair value is typically estimated using a discounted cash flow analysis, which requires the Company to estimate the future cash flows anticipated to be generated by the particular asset(s) being tested for impairment as well as selecting a discount rate to measure the present value of the anticipated cash flows. When determining future cash flow estimates, the Company considers historical results adjusted to reflect current and anticipated operating conditions. Estimating future cash flows requires significant judgment by the Company, in such areas as: future economic conditions, industry-specific conditions, product pricing and necessary capital expenditures. The use of different assumptions or estimates for future cash flows could produce different impairment amounts (or none at all) for long-lived assets, goodwill and identifiable intangible assets. The Company has performed an impairment review for the year ending December 31, 2014 and determined that one asset must be written down to zero, generating an impairment loss of $319. There were no similar impairment losses recorded in 2013 or 2012. | ||||||||||||||||||||||||||||
Operating Expenses | Operating Expenses—Operating expenses include cost centers for Selling, General and Administrative, Research, Product Development, and Regulatory, Freight, Delivery and Warehousing. | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Selling | $ | 31,593 | $ | 32,929 | $ | 25,869 | |||||||||||||||||||||||
General and administrative | 27,057 | 33,536 | 29,715 | ||||||||||||||||||||||||||
Research, product development and regulatory | 21,206 | 21,644 | 20,750 | ||||||||||||||||||||||||||
Freight, delivery and warehousing | 27,930 | 27,503 | 25,468 | ||||||||||||||||||||||||||
$ | 107,786 | $ | 115,612 | $ | 101,802 | ||||||||||||||||||||||||
Freight, Delivery and Warehousing Expense | Freight, Delivery and Warehousing Expense—Freight, delivery and warehousing costs incurred by the Company are reported as operating expenses. | ||||||||||||||||||||||||||||
Advertising Expense | Advertising Expense—The Company expenses advertising costs in the period incurred. Advertising expenses, which include promotional costs, are recognized in operating costs (specifically in selling expenses) in the consolidated statements of operations and were $4,322 in 2014, $4,011 in 2013 and $2,680 in 2012. | ||||||||||||||||||||||||||||
Inventories | Inventories —The Company values its inventories at lower of cost or market. Cost is determined by the first-in, first-out (“FIFO”) method, including material, labor, factory overhead and subcontracting services. The Company writes down and makes adjustments to its inventory carrying values as a result of the effects of unutilized capacity, net realizable value assessments of slow moving and obsolete inventory and other annual adjustments to ensure that our standard costs continue to closely reflect manufacturing cost. The Company recorded an inventory reserve allowance of $3,882 at December 31, 2014, as compared to $2,602 at December 31, 2013. | ||||||||||||||||||||||||||||
The components of inventories consist of the following: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Finished products | $ | 142,853 | $ | 126,872 | |||||||||||||||||||||||||
Raw materials | 22,778 | 12,958 | |||||||||||||||||||||||||||
$ | 165,631 | $ | 139,830 | ||||||||||||||||||||||||||
Revenue Recognition and Allowance for Doubtful Accounts | Revenue Recognition and Allowance for Doubtful Accounts—Revenue from sales is recognized at the time title and the risks of ownership pass. This is when the customer has made the fixed commitment to purchase the goods, the products are shipped per the customer’s instructions, the sales price is fixed and determinable, and collection is reasonably assured. The Company has in place procedures to ensure that revenue is recognized when earned. The procedures are subject to management’s review and from time to time certain sales are excluded until it is clear that the title has passed and there is no further recourse to the Company. Allowance for doubtful accounts is established based on estimates of losses related to customer receivable balances. Estimates are developed using either standard quantitative measures based on historical losses, adjusted for current economic conditions or by evaluating specific customer accounts for risk of loss. | ||||||||||||||||||||||||||||
Accrued Program Costs | Accrued Program Costs—In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, the Company classifies certain payments to its customers as a reduction of sales revenues. The Company describes these payments as “Programs.” Programs are a critical part of doing business in the agricultural chemicals business market place. For accounting purposes, programs are recorded as a reduction in gross sales and include market pricing adjustments, volume take up or other key performance indicators, driven payments made to distributors, retailers or growers at the end of a growing season. Each quarter management compares each sale transaction with published programs to determine what program liability has been incurred. Once this initial calculation is made for the specific quarter, sales and marketing management along with executive and financial management review the accumulated program balance and make assessments of whether or not customers are tracking in a manner that indicates that they will meet the requirements set out in the terms and conditions attached to each program. If management believes that customers are falling short of their annual goals then periodic adjustments will be made to the accumulated accrual to properly reflect the Company’s best estimate of the liability at the balance sheet date. The majority of adjustments are made at the end of the crop season, at which time customer performance can be fully assessed. Programs are paid out predominantly on an annual basis, usually in the final quarter of the financial year or the first quarter of the following year. | ||||||||||||||||||||||||||||
Long-lived Assets | Long-lived Assets— Long-lived assets primarily consist of the costs of Smartbox and Lock and Load containers. The carrying value of long-lived assets is reviewed for impairment quarterly and/or whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The Company evaluates recoverability of an asset group by comparing the carrying value to the future undiscounted cash flows that it expects to generate from the asset group. If the comparison indicates that the carrying value of an asset group is not recoverable, measurement of the impairment loss is based on the fair value of the asset. There were no circumstances that indicate any impairment of the carrying value of these long-lived assets and, as a result, no impairment losses were recorded in 2014 or 2013. | ||||||||||||||||||||||||||||
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation—Property, plant and equipment includes the cost of land, buildings, machinery and equipment, office furniture and fixtures, automobiles, construction projects and significant improvements to existing plant and equipment. Interest costs related to significant construction projects are capitalized at the Company’s current weighted effective interest rate. Expenditures for maintenance and minor repairs are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts, and the gain or loss realized on disposition is reflected in earnings. All plant and equipment is depreciated using the straight-line method, utilizing the estimated useful property lives. Building lives range from 10 to 30 years; machinery and equipment lives range from 3 to 15 years; office furniture and fixture lives range from 3 to 10 years; automobile lives range from 3 to 6 years; construction projects and significant improvements to existing plant and equipment lives range from 3 to 15 years when placed in service. The agricultural chemicals business involves complex manufacturing processes that drive high capital cost plant. | ||||||||||||||||||||||||||||
Foreign Currency Translation | Foreign Currency Translation—Assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, have been translated at period end exchange rates, and profit and loss accounts have been translated using weighted average yearly exchange rates. Adjustments resulting from translation have been recorded in the equity section of the balance sheet as cumulative translation adjustments in other comprehensive income (loss). The effects of foreign currency exchange gains and losses on transactions that are denominated in currencies other than the Company’s functional currency are remeasured to the functional currency using the end of the period exchange rates. The effects of remeasurement related to foreign currency transactions are included in the Company’s operating results. | ||||||||||||||||||||||||||||
Income Taxes | Income Taxes—The Company utilizes the liability method of accounting for income taxes as set forth in ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances, the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made. | ||||||||||||||||||||||||||||
The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. | |||||||||||||||||||||||||||||
Per Share Information | Per Share Information—FASB ASC 260 requires dual presentation of basic earnings per share (“EPS”) and diluted EPS on the face of all income statements. Basic EPS is computed as net income divided by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects potential dilution to EPS that could occur if securities or other contracts, which, for the Company, consists of restricted stock grants and options to purchase shares of the Company’s common stock, are exercised as calculated using the treasury stock method. | ||||||||||||||||||||||||||||
The components of basic and diluted earnings per share were as follows: | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Net income attributable to American Vanguard | $ | 4,841 | $ | 34,449 | $ | 36,867 | |||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average shares outstanding—basic | 28,436 | 28,301 | 27,914 | ||||||||||||||||||||||||||
Dilutive effect of stock options and grants | 476 | 598 | 842 | ||||||||||||||||||||||||||
28,912 | 28,899 | 28,756 | |||||||||||||||||||||||||||
The Company excluded 1,616 stock options from the computation of diluted earnings per share for the year ended December 31, 2014, because they are anti-dilutive. For the years ended December 31, 2013 and 2012, no options were excluded from the computation. | |||||||||||||||||||||||||||||
Accounting Estimates | Accounting Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses at the date that the financial statements are prepared. Actual results could differ from those estimates. | ||||||||||||||||||||||||||||
Reclassifications | Reclassifications—Certain prior year’s amounts have been reclassified to conform to the current year’s presentation. | ||||||||||||||||||||||||||||
Total Comprehensive Income | Total comprehensive income—In addition to net income, total comprehensive income includes changes in equity that are excluded from the consolidated statements of operations and are recorded directly into a separate section of stockholders’ equity on the consolidated balance sheets. For the years ended December 31, 2014 and 2013, total comprehensive income consisted of net income attributable to American Vanguard, the change in fair value of interest rate swaps and foreign currency translation adjustments. | ||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation—The Company accounts for stock-based awards to employees and directors using FASB ASC 718. When applying the provisions of FASB ASC 718, the Company also applies the provisions of Staff Accounting Bulletin (“SAB”) No. 107 and SAB No. 110. | ||||||||||||||||||||||||||||
FASB ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. | |||||||||||||||||||||||||||||
Stock-based compensation expense recognized during the period is based on the fair value of the portion of share-based payment awards that is ultimately expected to vest during the period. Stock-based compensation expense recognized is reduced for forfeitures as required by FASB ASC 718. Estimated forfeitures recognized in the Company’s Consolidated Statement of Operations reduced compensation expense by $247, $247, and $88 for the years ended December 31, 2014, 2013, and 2012, respectively. The Company estimates that 7.3% of all restricted stock grants, 20.7% of the performance based restricted shares and 4.2% of all stock option grants that are currently vesting will be forfeited. These estimates are reviewed quarterly and revised as necessary. | |||||||||||||||||||||||||||||
The below table illustrates the Company’s unamortized stock-based compensation expenses as of December 31, 2014 and December 31, 2013 that will be recognized over the respective weighted average period. This projected expense will change if any stock options and restricted stock are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures. | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Description | Unamortized | Remaining | Unamortized | Remaining | |||||||||||||||||||||||||
Stock-Based | Weighted | Stock-Based | Weighted | ||||||||||||||||||||||||||
Compensation | Average | Compensation | Average | ||||||||||||||||||||||||||
Expenses | Period (yrs) | Expenses | Period (yrs) | ||||||||||||||||||||||||||
Options | $ | 1,457 | 3 | $ | 21 | 0.5 | |||||||||||||||||||||||
Performance Based Options | 551 | 3 | — | — | |||||||||||||||||||||||||
Restricted Stock | 4,829 | 1.8 | 5,550 | 1.9 | |||||||||||||||||||||||||
Performance Based Restricted Stock | 1,249 | 2.1 | 564 | 2.4 | |||||||||||||||||||||||||
The Company uses the Black-Scholes option-pricing model (“Black-Scholes model”) to value option grants using the following weighted average assumptions: | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Risk free interest rate | 2 | % | |||||||||||||||||||||||||||
Dividend yield | 0.9 | % | |||||||||||||||||||||||||||
Volatility factor | 48.9 | % | |||||||||||||||||||||||||||
Weighted average life (years) | 6.5 years | ||||||||||||||||||||||||||||
The weighted average grant-date fair values of options granted during 2014 was $5.27. There were no option shares granted during 2013 and 2012. | |||||||||||||||||||||||||||||
The expected volatility and expected life assumptions are highly complex and use subjective variables. The variables take into consideration, among other things, actual and projected employee stock option exercise behavior. The Company estimates the expected term or vesting period using the “safe harbor” provisions of SAB 107 and SAB 110. The Company used historical volatility as a proxy for estimating expected volatility. | |||||||||||||||||||||||||||||
The Company values restricted stock grants using the Company’s traded stock price on the date of grant. The weighted average grant-date fair values of restricted stock grants during 2014, 2013, and 2012 were $14.81, $30.91, and $21.51, respectively. | |||||||||||||||||||||||||||||
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance | ||||||||||||||||||||||||||||
In August 2014, The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU requires that management of an entity assesses whether there is substantial doubt about the ability of the entity to continue as a going concern and for making the appropriate disclosures. The assessment must be performed at each annual and interim reporting period, and there is substantial doubt about an entity’s ability to continue as a going concern if it is probable that the entity will be unable to meet its obligations as they become due within 12 months of the date of the financial statements are issued. In the assessment, management must consider the information available at the date of issuance of the financial statements, as well as mitigating factors and plans to alleviate the substantial doubt. ASU 2014-15 is effective for annual period ending after December 15, 2016 and interim periods thereafter. Early application is permitted. Upon adoption, the Company will have to follow the guidance in this ASU when assessing going concern. | |||||||||||||||||||||||||||||
In June 2014, FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period, a consensus of the FASB Emerging Issues Task Force. ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for all entities for interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity may apply the amendments in ASU 2014-12 either (i) prospectively to all awards granted or modified after the effective date or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s consolidated financial condition or results of operations. | |||||||||||||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017 or its impact on our consolidated financial statements. |
Description_of_Business_Basis_2
Description of Business, Basis of Consolidation and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Summary of Business Sales and Gross Profit Information | Based on similar economic and operational characteristics, the Company’s business is aggregated into one reportable segment. Selective enterprise information is as follows: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||
Insecticides | $ | 135,705 | $ | 193,623 | $ | 194,060 | |||||||||||||||||||||||
Herbicides/soil fumigants/fungicides | 101,785 | 121,042 | 89,899 | ||||||||||||||||||||||||||
Other, including plant growth regulators | 30,220 | 31,849 | 45,581 | ||||||||||||||||||||||||||
Total crop | 267,710 | 346,514 | 329,540 | ||||||||||||||||||||||||||
Non-crop | 30,924 | 34,507 | 36,650 | ||||||||||||||||||||||||||
$ | 298,634 | $ | 381,021 | $ | 366,190 | ||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||
Crop | $ | 101,633 | $ | 155,275 | $ | 142,019 | |||||||||||||||||||||||
Non-crop | 12,863 | 16,072 | 19,106 | ||||||||||||||||||||||||||
$ | 114,496 | $ | 171,347 | $ | 161,125 | ||||||||||||||||||||||||
Summary of Operating Expense | Operating expenses include cost centers for Selling, General and Administrative, Research, Product Development, and Regulatory, Freight, Delivery and Warehousing. | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Selling | $ | 31,593 | $ | 32,929 | $ | 25,869 | |||||||||||||||||||||||
General and administrative | 27,057 | 33,536 | 29,715 | ||||||||||||||||||||||||||
Research, product development and regulatory | 21,206 | 21,644 | 20,750 | ||||||||||||||||||||||||||
Freight, delivery and warehousing | 27,930 | 27,503 | 25,468 | ||||||||||||||||||||||||||
$ | 107,786 | $ | 115,612 | $ | 101,802 | ||||||||||||||||||||||||
Components of Inventories | The components of inventories consist of the following: | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Finished products | $ | 142,853 | $ | 126,872 | |||||||||||||||||||||||||
Raw materials | 22,778 | 12,958 | |||||||||||||||||||||||||||
$ | 165,631 | $ | 139,830 | ||||||||||||||||||||||||||
Impact of Derivatives on Statement of Operations | The following tables illustrate the impact of derivatives on the Company’s statement of operations for the year ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Financial Performance | |||||||||||||||||||||||||||||
For the Period Ended December 31 | |||||||||||||||||||||||||||||
Derivatives in ASC 815 Cash Flow | Amount of Gain or | Location of Gain or | Amount of Gain or | Location of Gain or | Amount of Gain or | ||||||||||||||||||||||||
(Loss) Recognized in | (Loss) Reclassified | (Loss) Reclassified | (Loss) Recognized in | (Loss) Recognized | |||||||||||||||||||||||||
OCI on Derivative | from Accumulated | from Accumulated | Income on Derivative | in Income on | |||||||||||||||||||||||||
(Effective Portion) | OCI into Income | OCI into Income | Derivative | ||||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||||||
Hedging Relationships | 2014 | 2013 | (Effective Portion) | 2014 | 2013 | (Ineffective Portion) | 2014 | 2013 | |||||||||||||||||||||
Interest rate contracts | $ | (30 | ) | $ | (75 | ) | Interest expense | $ | (594 | ) | $ | (712 | ) | Interest expense | $ | (3 | ) | $ | (1 | ) | |||||||||
Total | $ | (30 | ) | $ | (75 | ) | $ | (594 | ) | $ | (712 | ) | $ | (3 | ) | $ | (1 | ) | |||||||||||
Foreign Currency Derivatives to Hedge Foreign Currency Balances Measured at Fair Value | |||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
Using Input Type | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||||||
Liability: | |||||||||||||||||||||||||||||
Interest rate derivative financial instruments (1) | $ | — | $ | 564 | $ | — | |||||||||||||||||||||||
-1 | Includes accrued interest expense | ||||||||||||||||||||||||||||
Components of Basic and Diluted Earnings per Share | The components of basic and diluted earnings per share were as follows: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Net income attributable to American Vanguard | $ | 4,841 | $ | 34,449 | $ | 36,867 | |||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average shares outstanding—basic | 28,436 | 28,301 | 27,914 | ||||||||||||||||||||||||||
Dilutive effect of stock options and grants | 476 | 598 | 842 | ||||||||||||||||||||||||||
28,912 | 28,899 | 28,756 | |||||||||||||||||||||||||||
Unamortized Stock Based Compensation Expenses | The below table illustrates the Company’s unamortized stock-based compensation expenses as of December 31, 2014 and December 31, 2013 that will be recognized over the respective weighted average period. This projected expense will change if any stock options and restricted stock are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures. | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Description | Unamortized | Remaining | Unamortized | Remaining | |||||||||||||||||||||||||
Stock-Based | Weighted | Stock-Based | Weighted | ||||||||||||||||||||||||||
Compensation | Average | Compensation | Average | ||||||||||||||||||||||||||
Expenses | Period (yrs) | Expenses | Period (yrs) | ||||||||||||||||||||||||||
Options | $ | 1,457 | 3 | $ | 21 | 0.5 | |||||||||||||||||||||||
Performance Based Options | 551 | 3 | — | — | |||||||||||||||||||||||||
Restricted Stock | 4,829 | 1.8 | 5,550 | 1.9 | |||||||||||||||||||||||||
Performance Based Restricted Stock | 1,249 | 2.1 | 564 | 2.4 | |||||||||||||||||||||||||
Summary of Value Option Grants Using Weighted Average Assumptions | The Company uses the Black-Scholes option-pricing model (“Black-Scholes model”) to value option grants using the following weighted average assumptions: | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Risk free interest rate | 2 | % | |||||||||||||||||||||||||||
Dividend yield | 0.9 | % | |||||||||||||||||||||||||||
Volatility factor | 48.9 | % | |||||||||||||||||||||||||||
Weighted average life (years) | 6.5 years |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Property, Plant and Equipment | Property, plant and equipment at December 31, 2014 and 2013 consist of the following: | ||||||||||||
2014 | 2013 | Estimated | |||||||||||
useful lives | |||||||||||||
Land | $ | 2,458 | $ | 2,458 | |||||||||
Buildings and improvements | 14,380 | 14,167 | 10 to 30 years | ||||||||||
Machinery and equipment | 107,899 | 94,184 | 3 to 15 years | ||||||||||
Office furniture, fixtures and equipment | 4,698 | 9,717 | 3 to 10 years | ||||||||||
Automotive equipment | 374 | 278 | 3 to 6 years | ||||||||||
Construction in progress | 3,432 | 10,615 | |||||||||||
133,241 | 131,419 | ||||||||||||
Less accumulated depreciation | (83,215 | ) | (78,951 | ) | |||||||||
$ | 50,026 | $ | 52,468 | ||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Summary of Long Term Debt | Long-term debt of the Company at December 31, 2014 and 2013 is summarized as follows: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Revolving line of credit(a) | $ | 99,400 | $ | 51,550 | |||||||||||||||||||||
Notes payable | 126 | 195 | |||||||||||||||||||||||
99,526 | 51,745 | ||||||||||||||||||||||||
Less current installments | (71 | ) | (69 | ) | |||||||||||||||||||||
$ | 99,455 | $ | 51,676 | ||||||||||||||||||||||
a) | On July 11, 2014, AMVAC Chemical Corporation (“AMVAC”), our principal operating subsidiary, as borrower, and affiliates (including the Company), as guarantors and/or borrowers, entered into a First Amendment to Second Amended and Restated Credit Agreement (the “First Amendment”) with a group of commercial lenders led by Bank of the West (AMVAC’s primary bank) as agent, swing line lender and L/C issuer. The First Amendment amends the Second Amended and Restated Credit Agreement (“2013 Credit Agreement”) dated as of June 17, 2013. Under the terms of the First Amendment, the Consolidated Funded Debt Ratio was increased for the third and fourth quarters of 2014 and the first quarter of 2015, and, further, borrowers are permitted to pay cash dividends to shareholders during the first and second quarters of 2015, notwithstanding prior levels of net income. The 2013 Credit Agreement, as amended by the First Amendment (the “Credit Agreement”) is a senior secured lending facility with a five year term and consisting of a revolving line of credit of $200 million and an accordion feature for up to $100 million. The Credit Agreement includes both AMVAC CV and AMVAC BV as borrowers. Under the Credit Agreement, revolving loans bear interest at a variable rate based, at borrower’s election with proper notice, on either (i) LIBOR plus the “Applicable Rate” which is based upon the Consolidated Funded Debt Ratio (“Eurocurrency Rate Loan”) or (ii) the greater of (x) the Prime Rate, (y) the Federal Funds Rate plus 0.5%, and (z) the Daily One-Month LIBOR Rate plus 1.00%, plus, in the case of (x), (y) or (z) the Applicable Rate (“Alternate Base Rate Loan”). Interest payments for Eurocurrency Rate Loans are payable on the last day of each interest period (either one, two, three or six months, as selected by the borrower) and the maturity date, while interest payments for Alternate Base Rate Loans are payable on the last business day of each month and the maturity date. The senior secured revolving line of credit matures on June 17, 2018. | ||||||||||||||||||||||||
Payments on Long-term Debt Details | Approximate principal payments on long-term debt at December 31, 2014 are as follows: | ||||||||||||||||||||||||
2015 | $ | 71 | |||||||||||||||||||||||
2016 | 55 | ||||||||||||||||||||||||
2017 | — | ||||||||||||||||||||||||
2018 | 99,400 | ||||||||||||||||||||||||
$ | 99,526 | ||||||||||||||||||||||||
Amount of Outstanding Debt and Notional Amount on Interest Rate Swap Contract | The table below shows the amount of outstanding debt and the related notional amount on the interest rate swap contract at each of the balance sheet dates: | ||||||||||||||||||||||||
Outstanding | Notional Amount on | ||||||||||||||||||||||||
Variable Rate Debt | Interest Rate Swap | ||||||||||||||||||||||||
At December 31, 2012 | $ | 46,000 | $ | 44,250 | |||||||||||||||||||||
At December 31, 2013 | 51,550 | 36,750 | |||||||||||||||||||||||
At December 31, 2014 | 99,400 | — | |||||||||||||||||||||||
Summary of Short-Term and Long-Term Loan Balances in the Consolidated Balance Sheets | The Company has various loans in place that together constitute the short-term and long-term loan balances shown in the consolidated balance sheets at December 31, 2014 and December 31, 2013. These are summarized in the following table: | ||||||||||||||||||||||||
Indebtedness | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
$000’s | Long-term | Short-term | Total | Long-term | Short-term | Total | |||||||||||||||||||
Revolving line of credit | $ | 99,400 | $ | — | $ | 99,400 | $ | 51,550 | $ | — | $ | 51,550 | |||||||||||||
Notes payable | 55 | 71 | 126 | 126 | 69 | 195 | |||||||||||||||||||
Total indebtedness | $ | 99,455 | $ | 71 | $ | 99,526 | $ | 51,676 | $ | 69 | $ | 51,745 | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Components of Income Tax (Benefit) Expense | The components of income tax (benefit) expense are: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | (4,256 | ) | $ | 12,285 | $ | 17,448 | ||||||
State | 251 | 3,007 | 2,528 | ||||||||||
Foreign | 934 | 1,101 | 1,027 | ||||||||||
Deferred: | |||||||||||||
Federal | 3,492 | 2,213 | (590 | ) | |||||||||
State | (872 | ) | 310 | (387 | ) | ||||||||
$ | (451 | ) | $ | 18,916 | $ | 20,026 | |||||||
Total Income Tax Expense Applying U.S. Federal Income Tax Rate | Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 35.0% to income before income tax expense as a result of the following: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed tax expense at statutory federal rates | $ | 1,536 | $ | 18,678 | $ | 19,911 | |||||||
Increase (decrease) in taxes resulting from: | |||||||||||||
State taxes, net of federal income tax benefit | (11 | ) | 1,983 | 1,947 | |||||||||
Domestic production deduction | 420 | (1,142 | ) | (1,661 | ) | ||||||||
Income tax credits | (728 | ) | (724 | ) | (395 | ) | |||||||
Foreign tax rate differential | (2,159 | ) | (1,459 | ) | (195 | ) | |||||||
Subpart F income | 338 | — | 87 | ||||||||||
Other expenses | 153 | 1,580 | 332 | ||||||||||
$ | (451 | ) | $ | 18,916 | $ | 20,026 | |||||||
Components of Income before Provision | The components of income before provision for income tax expense (benefit) are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | (5,196 | ) | $ | 46,520 | $ | 53,361 | ||||||
Foreign | 8,840 | 7,314 | 3,491 | ||||||||||
$ | 3,644 | $ | 53,834 | $ | 56,852 | ||||||||
Deferred Tax Assets and Liability | Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax liability at December 31, 2014 and 2013 relate to the following: | ||||||||||||
2014 | 2013 | ||||||||||||
Current: | |||||||||||||
Inventories | $ | 5,558 | $ | 4,398 | |||||||||
State income taxes | (633 | ) | (331 | ) | |||||||||
Vacation pay accrual | 776 | 648 | |||||||||||
Accrued bonuses | 95 | 1,791 | |||||||||||
Bad debt | 45 | 169 | |||||||||||
Prepaid expenses | (1,314 | ) | (1,929 | ) | |||||||||
Stock compensation | 2,446 | 1,281 | |||||||||||
Other | 1,758 | 494 | |||||||||||
Net deferred tax asset | $ | 8,731 | $ | 6,521 | |||||||||
Non-Current: | |||||||||||||
Plant and equipment, principally due to differences in depreciation and capitalized interest | $ | (28,365 | ) | $ | (25,662 | ) | |||||||
NOL Carryforward | 361 | — | |||||||||||
Tax credit | 319 | 14 | |||||||||||
Fair value adjustment | — | 207 | |||||||||||
Other | (474 | ) | 2,111 | ||||||||||
Net deferred tax liability | (28,159 | ) | (23,330 | ) | |||||||||
Total net deferred tax liability | $ | (19,428 | ) | $ | (16,809 | ) | |||||||
Gross Unrecognized Tax Liabilities | The following is a roll-forward of the Company’s total gross unrecognized tax liabilities, not including interest and penalties, for the fiscal year ended December 31, 2014: | ||||||||||||
2014 | 2013 | ||||||||||||
Gross | Gross | ||||||||||||
Unrecognized Tax | Unrecognized Tax | ||||||||||||
Liabilities | Liabilities | ||||||||||||
Balance at December 31, 2013 | $ | 1,692 | $ | 282 | |||||||||
Additions for tax positions related to the current year | 140 | 1,290 | |||||||||||
Additions for tax positions related to the prior year | 499 | 161 | |||||||||||
Deletion for tax positions related to the prior year | (373 | ) | (41 | ) | |||||||||
Balance at December 31, 2014 | $ | 1,958 | $ | 1,692 | |||||||||
Major_Customers_and_Export_Sal1
Major Customers and Export Sales (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Worldwide Export Sales | Worldwide export sales for 2014, 2013 and 2012 were as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Mexico | $ | 14,601 | $ | 15,661 | $ | 17,980 | |||||||
South & Central America | 16,585 | 15,491 | 16,374 | ||||||||||
Europe | 13,249 | 12,942 | 9,744 | ||||||||||
Asia | 7,683 | 8,129 | 7,308 | ||||||||||
Africa | 9,310 | 8,322 | 7,229 | ||||||||||
Australia | 4,202 | 2,692 | 4,444 | ||||||||||
Canada | 4,910 | 3,976 | 4,320 | ||||||||||
Middle East | 3,166 | 2,500 | 2,495 | ||||||||||
Other | — | 59 | 15 | ||||||||||
$ | 73,706 | $ | 69,772 | $ | 69,909 | ||||||||
Product_Acquisitions_Tables
Product Acquisitions (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule of Intangible Assets Recognized in Connection with Product Acquisitions | The following schedule represents intangible assets recognized in connection with product acquisitions (See description of Business, Basis of Consolidation and Significant Accounting Policies for the Company’s accounting policy regarding intangible assets): | ||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Intangible assets at December 31, 2011 | $ | 116,189 | |||||||||||||||||||||||
Acquisitions during fiscal 2012 | 3,473 | ||||||||||||||||||||||||
Impact of movement in exchange rates | (118 | ) | |||||||||||||||||||||||
Amortization expense | (6,023 | ) | |||||||||||||||||||||||
Intangible assets at December 31, 2012 | $ | 113,521 | |||||||||||||||||||||||
Impact of movement in exchange rates | (162 | ) | |||||||||||||||||||||||
Amortization expense | (6,352 | ) | |||||||||||||||||||||||
Intangible assets at December 31, 2013 | $ | 107,007 | |||||||||||||||||||||||
Write off during fiscal 2014 | (319 | ) | |||||||||||||||||||||||
Impact of movement in exchange rates | (86 | ) | |||||||||||||||||||||||
Amortization expense | (6,391 | ) | |||||||||||||||||||||||
Intangible assets at December 31, 2014 | $ | 100,211 | |||||||||||||||||||||||
Schedule of Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The following schedule represents the gross carrying amount and accumulated amortization of the intangible assets. Product rights are amortized over their expected useful lives of 25 years. Customer lists are amortized over their expected useful lives of ten years, and trademarks are amortized over their expected useful lives of 25 years. | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
$000’s | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Amortization | Value | Amortization | Value | ||||||||||||||||||||||
Product Rights | $ | 138,466 | $ | 49,733 | $ | 88,733 | $ | 139,094 | $ | 44,254 | $ | 94,840 | |||||||||||||
Customer Lists | 1,091 | 437 | 654 | 1,091 | 328 | 763 | |||||||||||||||||||
Trademarks | 12,941 | 2,117 | 10,824 | 12,941 | 1,537 | 11,404 | |||||||||||||||||||
Total Intangibles | $ | 152,498 | $ | 52,287 | $ | 100,211 | $ | 153,126 | $ | 46,119 | $ | 107,007 | |||||||||||||
Schedule of Future Amortization Charges Related to Intangible Assets | The following schedule represents future amortization charges related to intangible assets: | ||||||||||||||||||||||||
Year ending December 31, | |||||||||||||||||||||||||
2015 | $ | 6,371 | |||||||||||||||||||||||
2016 | 6,371 | ||||||||||||||||||||||||
2017 | 6,371 | ||||||||||||||||||||||||
2018 | 6,371 | ||||||||||||||||||||||||
2019 | 6,371 | ||||||||||||||||||||||||
Thereafter | 68,356 | ||||||||||||||||||||||||
$ | 100,211 | ||||||||||||||||||||||||
Schedule of Company's Obligations under Product Acquisitions and Licensing Agreements | The following schedule represents the Company’s obligations under product acquisitions and licensing agreements: | ||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Obligations under acquisition agreements at December 31, 2011 | $ | 17,624 | |||||||||||||||||||||||
Additional obligations acquired | 1,073 | ||||||||||||||||||||||||
Adjustment to deferred liabilities | (216 | ) | |||||||||||||||||||||||
FX impact | 48 | ||||||||||||||||||||||||
Amortization of discounted liabilities | 818 | ||||||||||||||||||||||||
Payments on existing obligations | (7,447 | ) | |||||||||||||||||||||||
Obligations under acquisition agreements at December 31, 2012 | $ | 11,900 | |||||||||||||||||||||||
Adjustment to deferred liabilities | (297 | ) | |||||||||||||||||||||||
FX impact | (1 | ) | |||||||||||||||||||||||
Amortization of discounted liabilities | 174 | ||||||||||||||||||||||||
Payments on existing obligations | (7,890 | ) | |||||||||||||||||||||||
Obligations under acquisition agreements at December 31, 2013 | $ | 3,886 | |||||||||||||||||||||||
Adjustment to deferred liabilities | (32 | ) | |||||||||||||||||||||||
Amortization of discounted liabilities | 324 | ||||||||||||||||||||||||
Payments on existing obligations | (1,686 | ) | |||||||||||||||||||||||
Obligations under acquisition agreements at December 31, 2014 | $ | 2,492 | |||||||||||||||||||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Future Minimum Lease Payments Under the Terms of the Leases | Future minimum lease payments under the terms of the leases are as follows: | ||||
Year ending December 31, | |||||
2015 | $ | 868 | |||
2016 | 433 | ||||
2017 | 135 | ||||
2018 | 135 | ||||
2019 | 135 | ||||
Thereafter | 1,035 | ||||
$ | 2,741 | ||||
Stock_Options_Tables
Stock Options (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Summary of Option Activity | Option activity within each plan is as follows: | ||||||||||||||||||||
Incentive | Weighted Average | Exercisable | |||||||||||||||||||
Stock Option | Price Per Share | Weighted | |||||||||||||||||||
Plans | Average | ||||||||||||||||||||
Price | |||||||||||||||||||||
Per Share | |||||||||||||||||||||
Balance outstanding, December 31, 2011 | 1,388,514 | $ | 7.44 | $ | 7.26 | ||||||||||||||||
Options exercised, range from $3.67-$14.99 | (659,733 | ) | 7.05 | ||||||||||||||||||
Options expired | (23,436 | ) | 10.41 | ||||||||||||||||||
Balance outstanding, December 31, 2012 | 705,345 | $ | 7.7 | $ | 7.95 | ||||||||||||||||
Options exercised, $7.50 | (126,149 | ) | 7.5 | ||||||||||||||||||
Options expired | (18,167 | ) | 7.5 | ||||||||||||||||||
Balance outstanding, December 31, 2013 | 561,029 | $ | 7.76 | $ | 7.7 | ||||||||||||||||
Options granted, $11.49 | 277,025 | 11.49 | |||||||||||||||||||
Options exercised, $7.50 | (113,150 | ) | 7.5 | ||||||||||||||||||
Balance outstanding, December 31, 2014 | 724,904 | $ | 9.22 | $ | 7.82 | ||||||||||||||||
Summary of Stock Options Summarized by Exercise Price | Information relating to stock options at December 31, 2014 summarized by exercise price is as follows: | ||||||||||||||||||||
Outstanding Weighted Average | Exercisable Weighted | ||||||||||||||||||||
Average | |||||||||||||||||||||
Exercise Price Per Share | Shares | Remaining | Exercise | Shares | Exercise | ||||||||||||||||
Life | Price | Price | |||||||||||||||||||
(Months) | |||||||||||||||||||||
Incentive Stock Option Plan: | |||||||||||||||||||||
$7.50 | 421,200 | 71 | $ | 7.5 | 421,200 | $ | 7.5 | ||||||||||||||
$11.32-$14.75 | 303,704 | 115 | $ | 11.61 | 26,679 | $ | 12.9 | ||||||||||||||
724,904 | $ | 9.22 | 447,879 | $ | 7.82 | ||||||||||||||||
Weighted Average Exercise Prices for Options Granted and Exercisable and Weighted Average Remaining Contractual Life for Options Outstanding | The weighted average exercise prices for options granted and exercisable and the weighted average remaining contractual life for options outstanding as of December 31, 2013 and 2014 was as follows: | ||||||||||||||||||||
Number | Weighted | Weighted | Intrinsic | ||||||||||||||||||
of | Average | Average | Value | ||||||||||||||||||
Shares | Exercise | Remaining | (thousands) | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
(Months) | |||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||
Incentive Stock Option Plans: | |||||||||||||||||||||
Outstanding | 561,029 | $ | 7.76 | 83 | $ | 9,276 | |||||||||||||||
Expected to Vest | 560,972 | $ | 7.76 | 83 | $ | 9,275 | |||||||||||||||
Exercisable | 554,362 | $ | 7.7 | 83 | $ | 9,196 | |||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||
Incentive Stock Option Plans: | |||||||||||||||||||||
Outstanding | 724,904 | $ | 9.22 | 90 | $ | 1,774 | |||||||||||||||
Expected to Vest | 713,172 | $ | 9.19 | 89 | $ | 1,773 | |||||||||||||||
Exercisable | 447,879 | $ | 7.82 | 71 | $ | 1,738 | |||||||||||||||
Summary of Non-Vested Shares | A status summary of non-vested shares as of December 31, 2014, is presented below: | ||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||
of | Average | ||||||||||||||||||||
Shares | Grant-Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested shares at January 1, 2014 | 376,702 | $ | 24.85 | ||||||||||||||||||
Granted | 240,724 | $ | 14.81 | ||||||||||||||||||
Vested | (35,812 | ) | $ | 14.74 | |||||||||||||||||
Forfeited | (20,772 | ) | $ | 17.91 | |||||||||||||||||
Nonvested shares at December 31, 2014 | 560,842 | $ | 21.44 | ||||||||||||||||||
Performance Shares | |||||||||||||||||||||
Summary of Non-Vested Shares | A status summary of non-vested shares as of December 31, 2014, is presented below: | ||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||
of | Average | ||||||||||||||||||||
Shares | Grant-Date | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested shares at January 1, 2014 | 24,637 | $ | 28.43 | ||||||||||||||||||
Granted | 79,270 | $ | 14.51 | ||||||||||||||||||
Nonvested shares at December 31, 2014 | 103,907 | $ | 17.81 | ||||||||||||||||||
Performance Based Options | |||||||||||||||||||||
Summary of Option Activity | Performance option activity is as follows: | ||||||||||||||||||||
Incentive | Weighted Average | Exercisable | |||||||||||||||||||
Stock Option | Price Per Share | Weighted | |||||||||||||||||||
Plans | Average | ||||||||||||||||||||
Price | |||||||||||||||||||||
Per Share | |||||||||||||||||||||
Balance outstanding, December 31, 2013 | — | $ | — | $ | — | ||||||||||||||||
Options granted, $11.49 | 107,689 | 11.49 | |||||||||||||||||||
Balance outstanding, December 31, 2014 | 107,689 | $ | 11.49 | $ | — | ||||||||||||||||
Summary of Stock Options Summarized by Exercise Price | Information relating to performance stock options at December 31, 2014 summarized by exercise price is as follows: | ||||||||||||||||||||
Outstanding Weighted Average | Exercisable Weighted | ||||||||||||||||||||
Average | |||||||||||||||||||||
Exercise Price Per Share | Shares | Remaining | Exercise | Shares | Exercise | ||||||||||||||||
Life | Price | Price | |||||||||||||||||||
(Months) | |||||||||||||||||||||
Performance Incentive Stock Option Plan: | |||||||||||||||||||||
$11.49 | 107,689 | 36 | $ | 11.49 | — | $ | — | ||||||||||||||
107,689 | $ | 11.49 | — | $ | — | ||||||||||||||||
Weighted Average Exercise Prices for Options Granted and Exercisable and Weighted Average Remaining Contractual Life for Options Outstanding | The weighted average exercise prices for performance options granted and exercisable and the weighted average remaining contractual life for performance options outstanding as of December 31, 2014 was as follows: | ||||||||||||||||||||
Number | Weighted | Weighted | Intrinsic | ||||||||||||||||||
of | Average | Average | Value | ||||||||||||||||||
Shares | Exercise | Remaining | (thousands) | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
(Months) | |||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||
Performance Incentive Stock Option Plans: | |||||||||||||||||||||
Outstanding | 107,689 | $ | 11.49 | 36 | $ | 14 | |||||||||||||||
Expected to Vest | 107,689 | $ | 11.49 | 36 | $ | 14 | |||||||||||||||
Exercisable | — | $ | — | — | $ | — |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Beginning Balance, Annual Activity and Ending Balance of each Component of Accumulated Other Comprehensive Income | The following table lists the beginning balance, annual activity and ending balance of each component of accumulated other comprehensive income: | ||||||||||||
Interest | FX | Total | |||||||||||
Rate | Translation | ||||||||||||
Swap | |||||||||||||
Balance, December 31, 2011 | $ | (886 | ) | $ | (1,364 | ) | $ | (2,250 | ) | ||||
Other comprehensive income/(loss) before reclassifications | (472 | ) | 330 | (142 | ) | ||||||||
Amounts reclassified from AOCI | 721 | — | 721 | ||||||||||
Tax effect | (91 | ) | — | (91 | ) | ||||||||
Balance, December 31, 2012 | $ | (728 | ) | $ | (1,034 | ) | $ | (1,762 | ) | ||||
Other comprehensive income/(loss) before reclassifications | (75 | ) | 326 | 251 | |||||||||
Amounts reclassified from AOCI | 712 | — | 712 | ||||||||||
Tax effect | (249 | ) | — | (249 | ) | ||||||||
Balance, December 31, 2013 | $ | (340 | ) | $ | (708 | ) | $ | (1,048 | ) | ||||
Other comprehensive income/(loss) before reclassifications | (30 | ) | (1,262 | ) | (1,292 | ) | |||||||
Amounts reclassified from AOCI | 594 | — | 594 | ||||||||||
Tax effect | (224 | ) | — | (224 | ) | ||||||||
Balance, December 31, 2014 | $ | — | $ | (1,970 | ) | $ | (1,970 | ) | |||||
Quarterly_DataUnaudited_Tables
Quarterly Data-Unaudited (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Quarterly Data | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
Quarterly Data—2014 | |||||||||||||||||
Net sales | $ | 81,095 | $ | 68,313 | $ | 71,635 | $ | 77,591 | |||||||||
Gross profit | 28,905 | 26,060 | 28,293 | 31,238 | |||||||||||||
Net income attributable to American Vanguard | 2,159 | 145 | 732 | 1,805 | |||||||||||||
Basic net income per share | 0.08 | 0.01 | 0.03 | 0.06 | |||||||||||||
Diluted net income per share | 0.07 | 0.01 | 0.03 | 0.06 | |||||||||||||
Quarterly Data—2013 | |||||||||||||||||
Net sales | $ | 121,537 | $ | 86,761 | $ | 97,201 | $ | 75,522 | |||||||||
Gross profit | 53,781 | 42,066 | 43,159 | 32,341 | |||||||||||||
Net income attributable to American Vanguard | 16,915 | 8,386 | 8,870 | 278 | |||||||||||||
Basic net income per share | 0.6 | 0.29 | 0.32 | 0.01 | |||||||||||||
Diluted net income per share | 0.59 | 0.29 | 0.3 | 0.01 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (Allowance for Doubtful Accounts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $392 | $623 | $340 |
Additions Charged to Costs and Expenses | 75 | ||
Charge to Other | -231 | 283 | |
Deductions | -301 | ||
Balance at End of Period | $166 | $392 | $623 |
Summary_of_Business_Sales_Segm
Summary of Business Sales Segmentation as per Product (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Sales: | |||||||||||
Total crop | $267,710 | $346,514 | $329,540 | ||||||||
Non-crop | 30,924 | 34,507 | 36,650 | ||||||||
Net sales | 77,591 | 71,635 | 68,313 | 81,095 | 75,522 | 97,201 | 86,761 | 121,537 | 298,634 | 381,021 | 366,190 |
Gross profit | 31,238 | 28,293 | 26,060 | 28,905 | 32,341 | 43,159 | 42,066 | 53,781 | 114,496 | 171,347 | 161,125 |
Crop | |||||||||||
Net Sales: | |||||||||||
Gross profit | 101,633 | 155,275 | 142,019 | ||||||||
Non-crop | |||||||||||
Net Sales: | |||||||||||
Gross profit | 12,863 | 16,072 | 19,106 | ||||||||
Insecticides | |||||||||||
Net Sales: | |||||||||||
Total crop | 135,705 | 193,623 | 194,060 | ||||||||
Herbicides/Soil Fumigants/Fungicides | |||||||||||
Net Sales: | |||||||||||
Total crop | 101,785 | 121,042 | 89,899 | ||||||||
Other, Including Plant Growth Regulators | |||||||||||
Net Sales: | |||||||||||
Total crop | $30,220 | $31,849 | $45,581 |
Summary_of_Operating_Expense_D
Summary of Operating Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Other Income (Expense) [Line Items] | |||
Selling | $31,593 | $32,929 | $25,869 |
General and administrative | 27,057 | 33,536 | 29,715 |
Research, product development and regulatory | 21,206 | 21,644 | 20,750 |
Freight, delivery and warehousing | 27,930 | 27,503 | 25,468 |
Operating expenses | $107,786 | $115,612 | $101,802 |
Description_of_Business_Basis_3
Description of Business, Basis of Consolidation and Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | TyraTech Inc. | TyraTech Inc. | TyraTech Inc. | TyraTech Inc. | Restricted Stock | Restricted Stock | Restricted Stock | Performance Shares | Stock Options | Stock Options | Stock Options | Building | Building | Machinery and equipment | Machinery and equipment | Office furniture, fixtures and equipment | Office furniture, fixtures and equipment | Automotive equipment | Automotive equipment | Construction in progress | Construction in progress | |
asset_group | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | ||||||
Derivative | |||||||||||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Advertising expense | $4,322,000 | $4,011,000 | $2,680,000 | ||||||||||||||||||||||
Inventory reserve allowance | 3,882,000 | 2,602,000 | |||||||||||||||||||||||
Property, Plant and Equipment Useful Life | 10 years | 30 years | 3 years | 15 years | 3 years | 10 years | 3 years | 6 years | 3 years | 15 years | |||||||||||||||
Number of Interest rate swap contract outstanding | 1 | ||||||||||||||||||||||||
Losses in other comprehensive income expected to be reclassified to earnings | 0 | 564,000 | 689,000 | ||||||||||||||||||||||
Number of intangible assets written down | 1 | ||||||||||||||||||||||||
Impaired intangible assets, carrying value | 0 | ||||||||||||||||||||||||
Intangible assets, impairment loss | 319,000 | 0 | 0 | ||||||||||||||||||||||
Shares issued by equity investee | 50,000,000 | 50,000,000 | 37,391,763 | 37,391,763 | |||||||||||||||||||||
Amount raised by equity investee on shares issued | 1,666,000 | 1,610,000 | 3,227,000 | 5,900,000 | 3,500,000 | 3,100,000 | 1,870,000 | ||||||||||||||||||
Gain from dilution of equity method investment | 954,000 | ||||||||||||||||||||||||
Warrants exercised amount | 500,000 | ||||||||||||||||||||||||
Warrants exercised shares | 6,155,000 | ||||||||||||||||||||||||
Ownership position in equity investment | 21.18% | ||||||||||||||||||||||||
Carrying value of equity investment | 3,172,000 | ||||||||||||||||||||||||
Quoted market value of equity investment | 3,555,000 | ||||||||||||||||||||||||
Anti-dilutive stock options excluded from computation of diluted earning per share | 1,616 | 0 | 0 | ||||||||||||||||||||||
Reduction in share based compensation expense | $247,000 | $247,000 | $88,000 | ||||||||||||||||||||||
Forfeited percentage of stock | 7.30% | 20.70% | 4.20% | ||||||||||||||||||||||
Weighted average grant-date fair values of options in period | $5.27 | ||||||||||||||||||||||||
Option shares granted | 0 | 0 | |||||||||||||||||||||||
Weighted average grant-date fair values of restricted stock grants | $14.81 | $30.91 | $21.51 | $14.51 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Finished products | $142,853 | $126,872 |
Raw materials | 22,778 | 12,958 |
Total Inventories | $165,631 | $139,830 |
Summary_of_Effect_of_Derivativ
Summary of Effect of Derivative Instruments on Statements of Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | ($30) | ($75) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -594 | -712 |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | -3 | -1 |
Designated as Hedging | Cash Flow Hedging | Interest Rate Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | -30 | -75 |
Designated as Hedging | Cash Flow Hedging | Interest Rate Contracts | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -594 | -712 |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | ($3) | ($1) |
Cash_Flow_Hedge_Related_to_Var
Cash Flow Hedge Related to Variable Debt Instrument and Outstanding Foreign Currency Derivatives to Hedge Foreign Currency Balances Measured at Fair Value on Recurring Basis, and Balances (Detail) (Fair Value, Measurements, Recurring, Cash Flow Hedging, Level 2, USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Fair Value, Measurements, Recurring | Cash Flow Hedging | Level 2 | ||
Liability: | ||
Interest rate derivative financial instruments | $564 | [1] |
[1] | Includes accrued interest expense. |
Components_of_Basic_and_Dilute
Components of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net income attributable to American Vanguard | $1,805 | $732 | $145 | $2,159 | $278 | $8,870 | $8,386 | $16,915 | $4,841 | $34,449 | $36,867 |
Denominator: | |||||||||||
Weighted average shares outstanding-basic | 28,436 | 28,301 | 27,914 | ||||||||
Dilutive effect of stock options and grants | 476 | 598 | 842 | ||||||||
Weighted average shares outstanding-assuming dilution | 28,912 | 28,899 | 28,756 |
Unamortized_Stock_Based_Compen
Unamortized Stock Based Compensation Expenses (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock Options | ||
Unrecognized Share Based Compensation Expense [Line Items] | ||
Unamortized Stock-Based Compensation Expenses | $1,457 | $21 |
Remaining Weighted Average Period (yrs) | 3 years | 6 months |
Performance Based Options | ||
Unrecognized Share Based Compensation Expense [Line Items] | ||
Unamortized Stock-Based Compensation Expenses | 551 | |
Remaining Weighted Average Period (yrs) | 3 years | |
Restricted Stock | ||
Unrecognized Share Based Compensation Expense [Line Items] | ||
Unamortized Stock-Based Compensation Expenses | 4,829 | 5,550 |
Remaining Weighted Average Period (yrs) | 1 year 9 months 18 days | 1 year 10 months 24 days |
Performance Shares | ||
Unrecognized Share Based Compensation Expense [Line Items] | ||
Remaining Weighted Average Period (yrs) | 2 years 1 month 6 days | 2 years 4 months 24 days |
Performance Based Restricted Stock | ||
Unrecognized Share Based Compensation Expense [Line Items] | ||
Unamortized Stock-Based Compensation Expenses | $1,249 | $564 |
Summary_of_Value_Option_Grants
Summary of Value Option Grants Using Weighted Average Assumptions (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate | 2.00% |
Dividend yield | 0.90% |
Volatility factor | 48.90% |
Weighted average life (years) | 6 years 6 months |
Summary_of_Property_Plant_and_
Summary of Property, Plant and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 133,241 | $131,419 |
Less accumulated depreciation | -83,215 | -78,951 |
Total Property, plant and equipment | 50,026 | 52,468 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 2,458 | 2,458 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 14,380 | 14,167 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 10 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 30 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 107,899 | 94,184 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 15 years | |
Office furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 4,698 | 9,717 |
Office furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 3 years | |
Office furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 10 years | |
Automotive equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 374 | 278 |
Automotive equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 3 years | |
Automotive equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 6 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 3,432 | $10,615 |
Construction in progress | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 3 years | |
Construction in progress | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment Useful Life | 15 years |
Summary_of_Long_Term_Debt_Deta
Summary of Long Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $99,526 | $51,745 | ||
Less current installments | -71 | -69 | ||
Long term debt, non current | 99,455 | 51,676 | ||
Revolving line of credit | ||||
Debt Instrument [Line Items] | ||||
Long term debt | 99,400 | [1] | 51,550 | [1] |
Long term debt, non current | 99,400 | 51,550 | ||
Notes payable | ||||
Debt Instrument [Line Items] | ||||
Long term debt | 126 | 195 | ||
Less current installments | -71 | -69 | ||
Long term debt, non current | $55 | $126 | ||
[1] | On July 11, 2014, AMVAC Chemical Corporation ("AMVAC"), our principal operating subsidiary, as borrower, and affiliates (including the Company), as guarantors and/or borrowers, entered into a First Amendment to Second Amended and Restated Credit Agreement (the "First Amendment") with a group of commercial lenders led by Bank of the West (AMVAC's primary bank) as agent, swing line lender and L/C issuer. The First Amendment amends the Second Amended and Restated Credit Agreement ("2013 Credit Agreement") dated as of June 17, 2013. Under the terms of the First Amendment, the Consolidated Funded Debt Ratio was increased for the third and fourth quarters of 2014 and the first quarter of 2015, and, further, borrowers are permitted to pay cash dividends to shareholders during the first and second quarters of 2015, notwithstanding prior levels of net income. The 2013 Credit Agreement, as amended by the First Amendment (the "Credit Agreement") is a senior secured lending facility with a five year term and consisting of a revolving line of credit of $200 million and an accordion feature for up to $100 million. The Credit Agreement includes both AMVAC CV and AMVAC BV as borrowers. Under the Credit Agreement, revolving loans bear interest at a variable rate based, at borrower's election with proper notice, on either (i) LIBOR plus the "Applicable Rate" which is based upon the Consolidated Funded Debt Ratio ("Eurocurrency Rate Loan") or (ii) the greater of (x) the Prime Rate, (y) the Federal Funds Rate plus 0.5%, and (z) the Daily One-Month LIBOR Rate plus 1.00%, plus, in the case of (x), (y) or (z) the Applicable Rate ("Alternate Base Rate Loan"). Interest payments for Eurocurrency Rate Loans are payable on the last day of each interest period (either one, two, three or six months, as selected by the borrower) and the maturity date, while interest payments for Alternate Base Rate Loans are payable on the last business day of each month and the maturity date. The senior secured revolving line of credit matures on June 17, 2018. |
Principal_Payments_on_LongTerm
Principal Payments on Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
2015 | $71 | |
2016 | 55 | |
2017 | 0 | |
2018 | 99,400 | |
Total indebtedness | $99,526 | $51,745 |
Summary_of_Long_Term_Debt_Pare
Summary of Long Term Debt (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Debt Instrument [Line Items] | |
Senior secured credit facility term | 5 years |
Senior secured credit facility, maturity date | 17-Jun-18 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Senior secured credit facility | 200 |
Maximum | Term Loan | |
Debt Instrument [Line Items] | |
Accordion feature | 100 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Fixed interest rate for interest rate swap contract | 3.39% | 3.39% | |
Interest rate swap, start date | 30-Mar-11 | ||
Interest rate swap, expiration date | 31-Dec-14 | ||
Total indebtedness | $99,526 | $51,745 | |
Maximum | |||
Debt Instrument [Line Items] | |||
Capacity to increase borrowings under credit agreement | 26,143 | ||
Term Loan | |||
Debt Instrument [Line Items] | |||
Average line of credit facility outstanding | 23,318 | 50,957 | |
Weighted average interest rate | 3.80% | 3.70% | |
Secured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Average line of credit facility outstanding | $94,899 | $29,284 | |
Weighted average interest rate | 2.50% | 3.10% |
Amount_of_Outstanding_Debt_and
Amount of Outstanding Debt and Notional Amount on Interest Rate Swap Contract (Detail) (Interest Rate Swap, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Interest Rate Swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Outstanding Variable Rate Debt | $99,400 | $51,550 | $46,000 |
Notional Amount on Interest Rate Swap | $36,750 | $44,250 |
Summary_Revolving_Line_of_Cred
Summary Revolving Line of Credit And Various Notes Payable Constitute Short-Term and Long-Term Loan Balances Together (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Extinguishment of Debt [Line Items] | ||||
Long Term debt | $99,455 | $51,676 | ||
Short-term | 71 | 69 | ||
Total indebtedness | 99,526 | 51,745 | ||
Revolving line of credit | ||||
Extinguishment of Debt [Line Items] | ||||
Long Term debt | 99,400 | 51,550 | ||
Total indebtedness | 99,400 | [1] | 51,550 | [1] |
Notes payable | ||||
Extinguishment of Debt [Line Items] | ||||
Long Term debt | 55 | 126 | ||
Short-term | 71 | 69 | ||
Total indebtedness | $126 | $195 | ||
[1] | On July 11, 2014, AMVAC Chemical Corporation ("AMVAC"), our principal operating subsidiary, as borrower, and affiliates (including the Company), as guarantors and/or borrowers, entered into a First Amendment to Second Amended and Restated Credit Agreement (the "First Amendment") with a group of commercial lenders led by Bank of the West (AMVAC's primary bank) as agent, swing line lender and L/C issuer. The First Amendment amends the Second Amended and Restated Credit Agreement ("2013 Credit Agreement") dated as of June 17, 2013. Under the terms of the First Amendment, the Consolidated Funded Debt Ratio was increased for the third and fourth quarters of 2014 and the first quarter of 2015, and, further, borrowers are permitted to pay cash dividends to shareholders during the first and second quarters of 2015, notwithstanding prior levels of net income. The 2013 Credit Agreement, as amended by the First Amendment (the "Credit Agreement") is a senior secured lending facility with a five year term and consisting of a revolving line of credit of $200 million and an accordion feature for up to $100 million. The Credit Agreement includes both AMVAC CV and AMVAC BV as borrowers. Under the Credit Agreement, revolving loans bear interest at a variable rate based, at borrower's election with proper notice, on either (i) LIBOR plus the "Applicable Rate" which is based upon the Consolidated Funded Debt Ratio ("Eurocurrency Rate Loan") or (ii) the greater of (x) the Prime Rate, (y) the Federal Funds Rate plus 0.5%, and (z) the Daily One-Month LIBOR Rate plus 1.00%, plus, in the case of (x), (y) or (z) the Applicable Rate ("Alternate Base Rate Loan"). Interest payments for Eurocurrency Rate Loans are payable on the last day of each interest period (either one, two, three or six months, as selected by the borrower) and the maturity date, while interest payments for Alternate Base Rate Loans are payable on the last business day of each month and the maturity date. The senior secured revolving line of credit matures on June 17, 2018. |
Components_of_Income_Tax_Benef
Components of Income Tax (Benefit) Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | ($4,256) | $12,285 | $17,448 |
State | 251 | 3,007 | 2,528 |
Foreign | 934 | 1,101 | 1,027 |
Deferred: | |||
Federal | 3,492 | 2,213 | -590 |
State | -872 | 310 | -387 |
Total income tax expense (benefit) | ($451) | $18,916 | $20,026 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | ||
Federal Income Tax Rate | 35.00% | |
Interest and penalties related to unrecognized tax benefits accrued | $215 | |
Undistributed foreign earnings reinvested | $23,803 | $16,202 |
State and Local Jurisdiction | Minimum | ||
Income Taxes [Line Items] | ||
Income Tax Examination Period | 2010 | |
State and Local Jurisdiction | Maximum | ||
Income Taxes [Line Items] | ||
Income Tax Examination Period | 2013 | |
Federal | Minimum | ||
Income Taxes [Line Items] | ||
Income Tax Examination Period | 2011 | |
Federal | Maximum | ||
Income Taxes [Line Items] | ||
Income Tax Examination Period | 2013 |
Total_Income_Tax_Expense_Apply
Total Income Tax Expense Applying U.S. Federal Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components Of Income Tax Expense Benefit [Line Items] | |||
Computed tax expense at statutory federal rates | $1,536 | $18,678 | $19,911 |
Increase (decrease) in taxes resulting from: | |||
State taxes, net of federal income tax benefit | -11 | 1,983 | 1,947 |
Domestic production deduction | 420 | -1,142 | -1,661 |
Income tax credits | -728 | -724 | -395 |
Foreign tax rate differential | -2,159 | -1,459 | -195 |
Subpart F income | 338 | 87 | |
Other expenses | 153 | 1,580 | 332 |
Total income tax expense (benefit) | ($451) | $18,916 | $20,026 |
Components_of_Income_Loss_befo
Components of Income (Loss) before Provision Benefit (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Income Before Income Tax [Line Items] | |||
Domestic | ($5,196) | $46,520 | $53,361 |
Foreign | 8,840 | 7,314 | 3,491 |
Income (loss) before income taxes total | $3,644 | $53,834 | $56,852 |
Temporary_Differences_in_Finan
Temporary Differences in Financial Statement Carrying Amounts and Tax Bases of Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Inventories | $5,558 | $4,398 |
State income taxes | -633 | -331 |
Vacation pay accrual | 776 | 648 |
Accrued bonuses | 95 | 1,791 |
Bad debt | 45 | 169 |
Prepaid expenses | -1,314 | -1,929 |
Stock compensation | 2,446 | 1,281 |
Other | 1,758 | 494 |
Net deferred tax asset | 8,731 | 6,521 |
Plant and equipment, principally due to differences in depreciation and capitalized interest | -28,365 | -25,662 |
NOL Carryforward | 361 | |
Tax credit | 319 | 14 |
Fair value adjustment | 207 | |
Other | -474 | 2,111 |
Net deferred tax liability | -28,159 | -23,330 |
Total net deferred tax liability | ($19,428) | ($16,809) |
Gross_Unrecognized_Tax_Liabili
Gross Unrecognized Tax Liabilities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Contingency [Line Items] | ||
Beginning Balance | $1,692 | $282 |
Additions for tax positions related to the current year | 140 | 1,290 |
Additions for tax positions related to the prior year | 499 | 161 |
Deletion for tax positions related to the prior year | -373 | -41 |
Ending Balance | $1,958 | $1,692 |
Litigation_and_Environmental_A
Litigation and Environmental - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Nov. 20, 2014 | Sep. 19, 2013 | Dec. 31, 2014 | Mar. 31, 2012 | Oct. 31, 1997 |
Claimant | Case | Plaintiff | |||
Country | |||||
Loss Contingencies [Line Items] | |||||
Number of Claimants Involved in Case | 14 | ||||
Number of Claimants Not Involved in Case | 8 | ||||
Potential value of fine against AMVAC | $200 | ||||
Legal settlements | 168 | ||||
Delaware | |||||
Loss Contingencies [Line Items] | |||||
Number of cases filed | 2 | ||||
Hendler Law Firm | |||||
Loss Contingencies [Line Items] | |||||
Number of dismissed complaints | 22 | ||||
Former Banana Workers | |||||
Loss Contingencies [Line Items] | |||||
Number of claimants | 10 | ||||
Number Of Countries | 4 | ||||
Former Banana Workers | Louisiana And Delaware | |||||
Loss Contingencies [Line Items] | |||||
Number of pending claims | 2 | ||||
Former Banana Workers | Delaware | |||||
Loss Contingencies [Line Items] | |||||
Number of dismissed complaints | 2 | ||||
Number of claimants | 2,700 | ||||
Former Banana Workers | Domestic Lawsuits | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | 4 | ||||
Former Banana Workers | Nicaraguan Lawsuits | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | 85 | ||||
Former Banana Workers | Nicaraguan | |||||
Loss Contingencies [Line Items] | |||||
Number of claimants | 3,592 | ||||
Former Banana Workers | Nicaraguan | Public Law | |||||
Loss Contingencies [Line Items] | |||||
Number of Lawsuits Filed | 85 | ||||
Former Banana Workers | Nicaraguan | Special Law | |||||
Loss Contingencies [Line Items] | |||||
Number of Lawsuits Filed | 2 | ||||
Former Banana Workers | Nicaraguan | Compensatory Damages | |||||
Loss Contingencies [Line Items] | |||||
Value of claims paid | 1,000 | ||||
Former Banana Workers | Nicaraguan | Punitive Damages | |||||
Loss Contingencies [Line Items] | |||||
Value of claims paid | $5,000 |
Employee_Deferred_Compensation1
Employee Deferred Compensation Plan and Employee Stock Purchase Plan - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2001 | Jun. 30, 2011 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Percentage contribution, compensation | 100.00% | ||||
Matching percentage, employee contribution | 5.00% | ||||
Company's contributions amount | $1,445 | $1,330 | $982 | ||
Common stock under employee stock purchase plan, par value | $0.10 | $0.10 | |||
Shares of common stock purchased through the plan | 47,213 | 27,923 | 40,116 | ||
Employee Stock Purchase Plan | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of common stock shares under employee stock purchase plan | 1,000,000 | ||||
Common stock under employee stock purchase plan, par value | $0.10 | ||||
Employee stock purchase plan offering period | January 1 and July 1 of each year | ||||
Commons stock plan available for sale under plan | 995,000 | ||||
Available common stock under plan | 854,007 | 901,220 |
Major_Customers_and_Export_Sal2
Major Customers and Export Sales - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customer One | |||
Segment Reporting Information [Line Items] | |||
Percentage of customer receivables | 21.00% | 14.00% | 20.00% |
Customer Two | |||
Segment Reporting Information [Line Items] | |||
Percentage of customer receivables | 12.00% | 10.00% | 11.00% |
Customer Three | |||
Segment Reporting Information [Line Items] | |||
Percentage of customer receivables | 10.00% | 8.00% | 7.00% |
Customer Concentration Risk | Sales | Customer One | |||
Segment Reporting Information [Line Items] | |||
Percentage to company consolidated sales | 20.00% | 17.00% | 19.00% |
Customer Concentration Risk | Sales | Customer Two | |||
Segment Reporting Information [Line Items] | |||
Percentage to company consolidated sales | 11.00% | 13.00% | 10.00% |
Customer Concentration Risk | Sales | Customer Three | |||
Segment Reporting Information [Line Items] | |||
Percentage to company consolidated sales | 8.00% | 8.00% | 8.00% |
Summary_of_Worldwide_Export_Sa
Summary of Worldwide Export Sales (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | $73,706 | $69,772 | $69,909 |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | 14,601 | 15,661 | 17,980 |
Central & South America | |||
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | 16,585 | 15,491 | 16,374 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | 13,249 | 12,942 | 9,744 |
Asia | |||
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | 7,683 | 8,129 | 7,308 |
Africa | |||
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | 9,310 | 8,322 | 7,229 |
Australia | |||
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | 4,202 | 2,692 | 4,444 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | 4,910 | 3,976 | 4,320 |
Middle East | |||
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | 3,166 | 2,500 | 2,495 |
Other | |||
Segment Reporting Information [Line Items] | |||
Worldwide Export Sales | $59 | $15 |
Royalties_Additional_Informati
Royalties - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income Expense [Line Items] | |||
Royalty expense | $33 | $116 | $38 |
Schedule_of_Intangible_Assets_
Schedule of Intangible Assets Recognized in Connection with Product Acquisitions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||
Beginning Balance | $107,007 | $113,521 | $116,189 |
Write off during fiscal 2014 | -319 | ||
Acquisitions during fiscal year | 3,473 | ||
Impact of movement in exchange rates | -86 | -162 | -118 |
Amortization expense | -6,391 | -6,352 | -6,023 |
Ending Balance | $100,211 | $107,007 | $113,521 |
Product_Acquisitions_Additiona
Product Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||
Fair value reduction | $32 | $297 | $216 |
Product acquisition and licensing agreements obligation, Other Liability | 2,492 | ||
Costs and Expenses | |||
Business Acquisition [Line Items] | |||
Fair value reduction | 32 | 297 | 216 |
Cost of Sales | |||
Business Acquisition [Line Items] | |||
Fair value reduction | $0 | ||
Product Rights | |||
Business Acquisition [Line Items] | |||
Expected useful life | 25 years | ||
Customer Lists | |||
Business Acquisition [Line Items] | |||
Expected useful life | 10 years | ||
Trademarks | |||
Business Acquisition [Line Items] | |||
Expected useful life | 25 years |
Schedule_of_Gross_Carrying_Amo
Schedule of Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Gross | $152,498 | $153,126 |
Accumulated Amortization | 52,287 | 46,119 |
Net Book Value | 100,211 | 107,007 |
Product Rights | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Gross | 138,466 | 139,094 |
Accumulated Amortization | 49,733 | 44,254 |
Net Book Value | 88,733 | 94,840 |
Customer Lists | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Gross | 1,091 | 1,091 |
Accumulated Amortization | 437 | 328 |
Net Book Value | 654 | 763 |
Trademarks | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Gross | 12,941 | 12,941 |
Accumulated Amortization | 2,117 | 1,537 |
Net Book Value | $10,824 | $11,404 |
Schedule_of_Future_Amortizatio
Schedule of Future Amortization Charges Related to Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite Lived Intangible Assets And Liabilities Future Amortization Expense [Line Items] | ||
2015 | $6,371 | |
2016 | 6,371 | |
2017 | 6,371 | |
2018 | 6,371 | |
2019 | 6,371 | |
Thereafter | 68,356 | |
Net Book Value | $100,211 | $107,007 |
Schedule_of_Companys_Obligatio
Schedule of Company's Obligations Under Product Acquisitions and Licensing Agreements (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition, Contingent Consideration [Line Items] | |||
Beginning Balance | $3,886 | $11,900 | $17,624 |
Additional obligations acquired | 1,073 | ||
Adjustment to deferred liabilities | -32 | -297 | -216 |
FX impact | -1 | 48 | |
Amortization of discounted liabilities | 324 | 174 | 818 |
Payments on existing obligations | -1,686 | -7,890 | -7,447 |
Ending Balance | $2,492 | $3,886 | $11,900 |
Commitments_Additional_Informa
Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Commitments And Contingencies [Line Items] | |||
Rent Expense | $1,012 | $939 | $727 |
Hannibal, Missouri | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Long Term Ground Leases Expiration Period | 20 years | 20 years | |
Marsing | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Long Term Ground Leases Expiration Period | 25 years | 25 years | |
Minimum | Axis, Alabama | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Long Term Ground Leases Expiration Period | 20 years | ||
Maximum | Axis, Alabama | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Long Term Ground Leases Expiration Period | 35 years |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments Under Term Of Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $868 |
2016 | 433 |
2017 | 135 |
2018 | 135 |
2019 | 135 |
Thereafter | 1,035 |
Operating Leases, Future Minimum Payments Due, Total | $2,741 |
Research_and_Development_Addit
Research and Development - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Research And Development [Line Items] | |||
Research and development expenses | $21,206 | $21,644 | $20,750 |
Costs and Expenses | |||
Schedule Of Research And Development [Line Items] | |||
Research and development expenses | $8,591 | $8,604 | $7,648 |
Stock_Options_Additional_Infor
Stock Options - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential number of common stock issued under company's ISOP | 47,213 | 27,923 | 40,116 |
Incentive Stock Option Plans, Options granted | 277,025 | ||
Number of shares received upon exercise of stock options | 49,638 | ||
Value of shares received upon exercise of stock options | $1,651 | ||
Performance Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incentive Stock Option Plans, Options granted | 107,689 | ||
Number of option shares vest on anniversary of grant date | 107,689 | ||
Number of Shares, Granted | 107,689 | ||
Targeted performance percentage | 200.00% | ||
Performance based stock options based upon financial performance of earnings before interest and tax ("EBIT") and net sales goal for the period commencing January 1, 2015 and ending December 31, 2017 | Performance Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares vesting based on Performance | 80.00% | ||
Earnings before income tax goal weight, percentage | 50.00% | ||
Net sales goal weight, percentage | 30.00% | ||
Performance based stock options based upon AVD stock price appreciation over the course of the period commencing January 1, 2015 and ending December 31, 2017 | Performance Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares vesting based on Performance | 20.00% | ||
Incentive Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential number of common stock issued under company's ISOP | 4,296,000 | ||
Option Exercisable Maximum Period | 10 years | ||
Option Exercise Price as Percentage of Fair Value of Common Stock | 10.00% | ||
Option exercise price as percentage of fair value of common stock | 110.00% | ||
Total intrinsic value of options exercised | 1,480 | 2,365 | 15,910 |
Cash received from stock option exercised | 849 | 946 | 2,996 |
Incentive Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incentive Stock Option Plans, Options granted | 277,025 | 0 | 0 |
Incentive Stock Options | First Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of option shares vest on anniversary of grant date | 26,483 | ||
Incentive Stock Options | Second Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of option shares vest on anniversary of grant date | 26,483 | ||
Incentive Stock Options | Third Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of option shares vest on anniversary of grant date | 26,483 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Fair Value, Granted | 14.81 | $30.91 | 21.51 |
Number of forfeited common stock that is granted | 20,772 | ||
Number of Shares, Granted | 240,724 | ||
Nonvested unamortized stock-based compensation expense, contractual term | 1 year 9 months 18 days | 1 year 10 months 24 days | |
Restricted Stock | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common and restricted stock issued to employees and non-executive board members | 240,724 | 162,336 | 248,536 |
Stock option granted vesting period | 3 years | 3 years | 3 years |
The total fair value recognized over the related service periods | 3,566 | 5,018 | 5,346 |
Number of forfeited common stock that is granted | 20,772 | 11,999 | 1,367 |
Restricted Stock | Minimum | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Fair Value, Granted | 13.84 | $23.43 | 13.34 |
Restricted Stock | Maximum | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Fair Value, Granted | 14.92 | $31.83 | 34.04 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Fair Value, Granted | 14.51 | ||
Number of Shares, Granted | 79,270 | 24,637 | |
Cliff vesting date | 23-May-17 | ||
Targeted performance percentage | 200.00% | 200.00% | |
Number of years of service before vesting | 3 years | ||
Stock-based compensation expense | 168 | 90 | |
Unamortized stock-based compensation expense | 1,249 | $564 | |
Nonvested unamortized stock-based compensation expense, contractual term | 2 years 1 month 6 days | 2 years 4 months 24 days | |
Performance Shares | Performance based shares based upon net income and net sales for the period commencing April 1, 2013 and ending December 31, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Fair Value, Granted | 30.13 | ||
Percentage of shares vesting based on Performance | 80.00% | ||
Performance Shares | Performance based shares based upon AVD stock price appreciation over the course of the period commencing June 6, 2013 and ending on December 31, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Fair Value, Granted | 15.31 | ||
Percentage of shares vesting based on Performance | 20.00% | ||
Performance Shares | Performance based shares based upon financial performance of earnings before interest and tax ("EBIT") and net sales goal for the period commencing April 1, 2014 and ending December 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Fair Value, Granted | 14.92 | ||
Percentage of shares vesting based on Performance | 80.00% | ||
Earnings before income tax goal weight, percentage | 50.00% | ||
Net sales goal weight, percentage | 30.00% | ||
Performance Shares | Performance based shares based upon AVD stock price appreciation over the course of the period commencing April 1, 2014 and ending December 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Fair Value, Granted | 12.85 | ||
Percentage of shares vesting based on Performance | 20.00% |
Summary_of_Option_Activity_Det
Summary of Option Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incentive Stock Option Plans, Beginning balance | 561,029 | 705,345 | 1,388,514 |
Incentive Stock Option Plans, Option granted | 277,025 | ||
Incentive Stock Option Plans, Option exercised | -113,150 | -126,149 | -659,733 |
Incentive Stock Option Plans, Option expired or forfeited | -18,167 | -23,436 | |
Incentive Stock Option Plans, Ending balance | 724,904 | 561,029 | 705,345 |
Weighted Average Price Per Share, Beginning balance | $7.76 | $7.70 | $7.44 |
Weighted Average Price Per Share, Option granted | $11.49 | ||
Weighted Average Price Per Share, Option exercised | $7.50 | $7.50 | $7.05 |
Weighted Average Price Per Share, Option expired or forfeited | $7.50 | $10.41 | |
Weighted Average Price Per Share, Ending balance | $9.22 | $7.76 | $7.70 |
Exercisable Weighted Average Price Per Share, Beginning balance | $7.70 | $7.95 | $7.26 |
Exercisable Weighted Average Price Per Share, Ending balance | $7.82 | $7.70 | $7.95 |
Performance Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incentive Stock Option Plans, Option granted | 107,689 | ||
Incentive Stock Option Plans, Ending balance | 107,689 | ||
Weighted Average Price Per Share, Option granted | $11.49 | ||
Weighted Average Price Per Share, Ending balance | $11.49 |
Summary_of_Option_Activity_Par
Summary of Option Activity (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Price Per Share, Option granted, | $11.49 | ||
Weighted Average Price Per Share, Option exercised | $7.50 | $7.50 | $7.05 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised, Lower Range | $3.67 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised, Upper Range | $14.99 |
Summary_of_Stock_Options_Summa
Summary of Stock Options Summarized by Exercise Price (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding Weighted Average, Exercise Price | $9.22 | $7.76 | $7.70 | $7.44 |
Exercisable Weighted Average, Exercise Price | $7.82 | $7.70 | $7.95 | $7.26 |
Incentive Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding Weighted Average, Shares | 724,904 | |||
Outstanding Weighted Average, Remaining Life (Months) | 90 months | 83 months | ||
Outstanding Weighted Average, Exercise Price | $9.22 | $7.76 | ||
Exercisable Weighted Average, Shares | 447,879 | 554,362 | ||
Exercisable Weighted Average, Exercise Price | $7.82 | $7.70 | ||
Incentive Stock Option Plan | Range One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised, Lower Range | $7.50 | |||
Outstanding Weighted Average, Shares | 421,200 | |||
Outstanding Weighted Average, Remaining Life (Months) | 71 months | |||
Outstanding Weighted Average, Exercise Price | $7.50 | |||
Exercisable Weighted Average, Shares | 421,200 | |||
Exercisable Weighted Average, Exercise Price | $7.50 | |||
Incentive Stock Option Plan | Range Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised, Lower Range | $11.32 | |||
Options exercised, Upper Range | $14.75 | |||
Outstanding Weighted Average, Shares | 303,704 | |||
Outstanding Weighted Average, Remaining Life (Months) | 115 months | |||
Outstanding Weighted Average, Exercise Price | $11.61 | |||
Exercisable Weighted Average, Shares | 26,679 | |||
Exercisable Weighted Average, Exercise Price | $12.90 | |||
Performance Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding Weighted Average, Shares | 107,689 | |||
Outstanding Weighted Average, Remaining Life (Months) | 36 months | |||
Outstanding Weighted Average, Exercise Price | $11.49 | |||
Performance Based Options | Range Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised, Lower Range | $11.49 | |||
Outstanding Weighted Average, Shares | 107,689 | |||
Outstanding Weighted Average, Remaining Life (Months) | 36 months | |||
Outstanding Weighted Average, Exercise Price | $11.49 |
Weighted_Average_Exercise_Pric
Weighted Average Exercise Prices for Options Granted and Exercisable and Weighted Average Remaining Contractual Life for Options Outstanding (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Outstanding | 724,904 | 561,029 | 705,345 | 1,388,514 |
Weighted Average Exercise Price, Outstanding | $9.22 | $7.76 | $7.70 | $7.44 |
Weighted Average Exercisable, Exercise Price | $7.82 | $7.70 | $7.95 | $7.26 |
Incentive Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Outstanding | 724,904 | 561,029 | ||
Number of Shares, Expected to Vest | 713,172 | 560,972 | ||
Number of Shares, Exercisable | 447,879 | 554,362 | ||
Weighted Average Exercise Price, Outstanding | $9.22 | $7.76 | ||
Weighted Average Exercise Price, Expected to Vest | $9.19 | $7.76 | ||
Weighted Average Exercisable, Exercise Price | $7.82 | $7.70 | ||
Weighted Average Remaining Life, Outstanding | 90 months | 83 months | ||
Weighted Average Remaining Contractual Life, Expected to Vest | 89 months | 83 months | ||
Weighted Average Remaining Contractual Life, Exercisable | 71 months | 83 months | ||
Intrinsic Value, Outstanding | $1,774 | $9,276 | ||
Intrinsic Value, Expected to Vest | 1,773 | 9,275 | ||
Intrinsic Value, Exercisable | 1,738 | 9,196 | ||
Performance Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Outstanding | 107,689 | |||
Number of Shares, Expected to Vest | 107,689 | |||
Weighted Average Exercise Price, Outstanding | $11.49 | |||
Weighted Average Exercise Price, Expected to Vest | $11.49 | |||
Weighted Average Remaining Life, Outstanding | 36 months | |||
Weighted Average Remaining Contractual Life, Expected to Vest | 36 months | |||
Weighted Average Remaining Contractual Life, Exercisable | 0 months | |||
Intrinsic Value, Outstanding | 14 | |||
Intrinsic Value, Expected to Vest | $14 |
Summary_of_NonVested_Shares_De
Summary of Non-Vested Shares (Detail) (Restricted Stock, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Beginning balance | 376,702 | ||
Number of Shares, Granted | 240,724 | ||
Number of Shares, Vested | -35,812 | ||
Number of Shares, Forfeited | -20,772 | ||
Number of Shares, Ending Balance | 560,842 | 376,702 | |
Weighted Average Grant-Date Fair Value, Beginning balance | $24.85 | ||
Weighted Average Grant-Date Fair Value, Granted | $14.81 | $30.91 | $21.51 |
Weighted Average Grant-Date Fair Value, Vested | $14.74 | ||
Weighted Average Grant-Date Fair Value, Forfeited | $17.91 | ||
Weighted Average Grant-Date Fair Value, Ending balance | $21.44 | $24.85 |
Status_Summary_of_NonVested_Sh
Status Summary of Non-Vested Shares (Detail) (Performance Shares, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Beginning balance | 24,637 | |
Number of Shares, Granted | 79,270 | 24,637 |
Number of Shares, Ending Balance | 103,907 | 24,637 |
Weighted Average Grant-Date Fair Value, Beginning balance | $28.43 | |
Weighted Average Grant-Date Fair Value, Granted | $14.51 | |
Weighted Average Grant-Date Fair Value, Ending balance | $17.81 | $28.43 |
Beginning_Balance_Annual_Activ
Beginning Balance, Annual Activity and Ending Balance of each Component of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | ($1,048) | ($1,762) | ($2,250) |
Other comprehensive income/(loss) before reclassifications | -1,292 | 251 | -142 |
Amounts reclassified from AOCI | 594 | 712 | 721 |
Tax effect | -224 | -249 | -91 |
Ending Balance | -1,970 | -1,048 | -1,762 |
Interest Rate Swap | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -340 | -728 | -886 |
Other comprehensive income/(loss) before reclassifications | -30 | -75 | -472 |
Amounts reclassified from AOCI | 594 | 712 | 721 |
Tax effect | -224 | -249 | -91 |
Ending Balance | -340 | -728 | |
Accumulated Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -708 | -1,034 | -1,364 |
Other comprehensive income/(loss) before reclassifications | -1,262 | 326 | 330 |
Ending Balance | ($1,970) | ($708) | ($1,034) |
Equity_Method_Investment_Addit
Equity Method Investment - Additional Information (Detail) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Mar. 25, 2013 | Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2014 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | TyraTech Inc. | TyraTech Inc. | TyraTech Inc. | TyraTech Inc. | |
USD ($) | GBP (£) | USD ($) | GBP (£) | ||||||
Equity Method Investments [Line Items] | |||||||||
Equity investment | $3,687 | $500 | $3,687 | ||||||
Shares issued by equity investee | 50,000,000 | 50,000,000 | 37,391,763 | 37,391,763 | |||||
Amount raised by equity investee on shares issued | 1,666 | 1,610 | 3,227 | 5,900 | 3,500 | 3,100 | 1,870 | ||
Gain on dilution of equity method investment | 954 | ||||||||
Warrants exercised amount | 500 | ||||||||
Warrants exercised shares | 6,155,000 | ||||||||
Equity investment ownership position | 21.18% | ||||||||
Loss from equity method investment | -983 | -986 | |||||||
Carrying value of equity investment | 3,172 | ||||||||
Quoted market value of equity investment | $3,555 |
Schedule_of_Quarterly_Data_Det
Schedule of Quarterly Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Net sales | $77,591 | $71,635 | $68,313 | $81,095 | $75,522 | $97,201 | $86,761 | $121,537 | $298,634 | $381,021 | $366,190 |
Gross profit | 31,238 | 28,293 | 26,060 | 28,905 | 32,341 | 43,159 | 42,066 | 53,781 | 114,496 | 171,347 | 161,125 |
Net income attributable to American Vanguard | $1,805 | $732 | $145 | $2,159 | $278 | $8,870 | $8,386 | $16,915 | $4,841 | $34,449 | $36,867 |
Basic net income per share | $0.06 | $0.03 | $0.01 | $0.08 | $0.01 | $0.32 | $0.29 | $0.60 | $0.17 | $1.22 | $1.32 |
Diluted net income per share | $0.06 | $0.03 | $0.01 | $0.07 | $0.01 | $0.30 | $0.29 | $0.59 | $0.17 | $1.19 | $1.28 |