Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AVD | ||
Entity Registrant Name | AMERICAN VANGUARD CORP | ||
Entity Central Index Key | 0000005981 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, $.10 par value | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-13795 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-2588080 | ||
Entity Address, Address Line One | 4695 MacArthur Court | ||
Entity Address, City or Town | Newport Beach | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92660 | ||
City Area Code | 949 | ||
Local Phone Number | 260-1200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 30,159,277 | ||
Entity Public Float | $ 446.4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 6,581 | $ 6,168 |
Receivables: | ||
Trade, net of allowance for doubtful accounts of $2,300 and $1,263, respectively | 136,075 | 123,320 |
Other | 16,949 | 10,709 |
Total receivables | 153,024 | 134,029 |
Inventories, net | 163,313 | 159,895 |
Prepaid expenses | 10,457 | 10,096 |
Income taxes receivable | 2,824 | |
Total current assets | 336,199 | 310,188 |
Property, plant and equipment, net | 56,521 | 49,252 |
Operating lease right-of-use assets | 11,258 | |
Intangible assets, net | 198,377 | 186,583 |
Goodwill | 46,557 | 25,790 |
Other assets | 21,186 | 21,774 |
Total assets | 670,098 | 593,587 |
Current liabilities: | ||
Current installments of other liabilities | 1,513 | 1,609 |
Accounts payable | 64,881 | 66,535 |
Deferred revenue | 6,826 | 20,043 |
Accrued program costs | 47,699 | 37,349 |
Accrued expenses and other payables | 12,815 | 15,962 |
Operating lease liabilities, current | 4,904 | |
Income taxes payable | 4,030 | |
Total current liabilities | 138,638 | 145,528 |
Long-term debt, net of deferred loan fees | 148,766 | 96,671 |
Other liabilities, excluding current installments | 12,890 | 6,795 |
Operating lease liabilities, long-term | 6,503 | |
Deferred income tax liabilities, net | 19,145 | 15,363 |
Total liabilities | 325,942 | 264,357 |
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 33,233,614 shares in 2019 and 32,752,827 shares in 2018 | 3,324 | 3,276 |
Additional paid-in capital | 90,572 | 83,177 |
Accumulated other comprehensive loss | (5,698) | (4,507) |
Retained earnings | 274,118 | 262,840 |
Total stockholders' equity including treasury stock | 362,316 | 344,786 |
Less treasury stock at cost, 3,061,040 shares in 2019 and 2,902,992 shares in 2018 | (18,160) | (15,556) |
Total stockholders’ equity | 344,156 | 329,230 |
Total liabilities and stockholders’ equity | $ 670,098 | $ 593,587 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,300 | $ 1,263 |
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 | 33,233,614 | 32,752,827 |
Treasury stock, shares | 3,061,040 | 2,902,992 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 468,186 | $ 454,272 | $ 355,047 |
Cost of sales | 290,832 | 271,641 | 207,655 |
Gross profit | 177,354 | 182,631 | 147,392 |
Operating expenses | 151,133 | 143,610 | 120,598 |
Operating income | 26,221 | 39,021 | 26,794 |
Change in fair value of derivative instrument | 1,401 | ||
Interest expense, net | 7,209 | 4,024 | 1,941 |
Income before provision for income taxes and loss on equity method investments | 19,012 | 33,596 | 24,853 |
Provision for income taxes | 5,202 | 9,145 | 4,443 |
Income before loss on equity method investments | 13,810 | 24,451 | 20,410 |
Less net loss from equity method investments | 209 | 389 | 49 |
Net income | 13,601 | 24,062 | 20,361 |
Net loss (income) attributable to non-controlling interest | 133 | (87) | |
Net income attributable to American Vanguard | $ 13,601 | $ 24,195 | $ 20,274 |
Earnings per common share—basic | $ 0.47 | $ 0.83 | $ 0.70 |
Earnings per common share—assuming dilution | $ 0.46 | $ 0.81 | $ 0.68 |
Weighted average shares outstanding—basic | 29,030 | 29,326 | 29,100 |
Weighted average shares outstanding—assuming dilution | 29,656 | 30,048 | 29,703 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 13,601 | $ 24,062 | $ 20,361 |
Other comprehensive income | |||
Foreign currency translation adjustment | (1,191) | 344 | |
Comprehensive income | 12,410 | 24,062 | 20,705 |
Less: Comprehensive income (loss) attributable to non-controlling interest | (133) | 87 | |
Comprehensive income attributable to American Vanguard | $ 12,410 | $ 24,195 | $ 20,618 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income/(loss) | Retained Earnings | Treasury Stock | AVD Total | Non- Controlling Interest |
Balance at Dec. 31, 2016 | $ 282,357 | $ 3,183 | $ 71,699 | $ (4,851) | $ 220,428 | $ (8,269) | $ 282,190 | $ 167 |
Balance (in shares) at Dec. 31, 2016 | 31,819,695 | 2,450,634 | ||||||
Stocks issued under ESPP | $ 555 | $ 4 | 551 | 555 | ||||
Stocks issued under ESPP, Shares | 34,016 | 34,016 | ||||||
Cash dividends on common stock ($0.06 per share 2017, $0.08 per share 2018, $0.08 per share 2019) | $ (1,749) | (1,749) | (1,749) | |||||
Foreign currency translation adjustment, net | 344 | 344 | 344 | |||||
Stock based compensation | 4,714 | 4,714 | 4,714 | |||||
Stock options exercised; grants, termination, and vesting of restricted stock units (net of shares in lieu of taxes) | (1,268) | $ 38 | (1,306) | (1,268) | ||||
Stock options exercised; grants, termination, and vesting of restricted stock units (net of shares in lieu of taxes), Shares | 388,155 | |||||||
Net income | 20,361 | 20,274 | 20,274 | 87 | ||||
Balance at Dec. 31, 2017 | 305,314 | $ 3,225 | 75,658 | (4,507) | 238,953 | $ (8,269) | 305,060 | 254 |
Balance (in shares) at Dec. 31, 2017 | 32,241,866 | 2,450,634 | ||||||
Adjustment to recognize new revenue recognition standard, net of tax | 2,214 | 2,214 | 2,214 | |||||
Adjustment to recognize new standard on taxes on foreign asset transfers | (180) | (180) | (180) | |||||
Stocks issued under ESPP | $ 670 | $ 2 | 668 | 670 | ||||
Stocks issued under ESPP, Shares | 35,950 | 35,950 | ||||||
Cash dividends on common stock ($0.06 per share 2017, $0.08 per share 2018, $0.08 per share 2019) | $ (2,342) | (2,342) | (2,342) | |||||
Stock based compensation | 5,805 | 5,805 | 5,805 | |||||
Stock options exercised; grants, termination, and vesting of restricted stock units (net of shares in lieu of taxes) | 1,047 | $ 49 | 998 | 1,047 | ||||
Stock options exercised; grants, termination, and vesting of restricted stock units (net of shares in lieu of taxes), Shares | 475,011 | |||||||
Non-controlling interest | (73) | 48 | 48 | (121) | ||||
Shares Repurchased | (7,287) | $ (7,287) | (7,287) | |||||
Shares repurchased (In Shares) | (452,358) | |||||||
Net income | 24,062 | 24,195 | 24,195 | (133) | ||||
Balance at Dec. 31, 2018 | $ 329,230 | $ 3,276 | 83,177 | (4,507) | 262,840 | $ (15,556) | 329,230 | |
Balance (in shares) at Dec. 31, 2018 | 32,752,827 | 32,752,827 | 2,902,992 | |||||
Stocks issued under ESPP | $ 716 | $ 5 | 711 | 716 | ||||
Stocks issued under ESPP, Shares | 47,229 | 47,229 | ||||||
Cash dividends on common stock ($0.06 per share 2017, $0.08 per share 2018, $0.08 per share 2019) | $ (2,323) | (2,323) | (2,323) | |||||
Foreign currency translation adjustment, net | (1,191) | (1,191) | (1,191) | |||||
Stock based compensation | 7,160 | 7,160 | 7,160 | |||||
Stock options exercised; grants, termination, and vesting of restricted stock units (net of shares in lieu of taxes) | (433) | $ 43 | (476) | (433) | ||||
Stock options exercised; grants, termination, and vesting of restricted stock units (net of shares in lieu of taxes), Shares | 433,558 | |||||||
Shares Repurchased | (2,604) | $ (2,604) | (2,604) | |||||
Shares repurchased (In Shares) | (158,048) | |||||||
Net income | 13,601 | 13,601 | 13,601 | |||||
Balance at Dec. 31, 2019 | $ 344,156 | $ 3,324 | $ 90,572 | $ (5,698) | $ 274,118 | $ (18,160) | $ 344,156 | |
Balance (in shares) at Dec. 31, 2019 | 33,233,614 | 33,233,614 | 3,061,040 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends on common stock, per share | $ 0.08 | $ 0.08 | $ 0.06 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 13,601 | $ 24,062 | $ 20,361 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property, plant and equipment and intangible assets | 18,643 | 18,891 | 16,959 |
Amortization of other long term assets | 4,207 | 4,884 | 5,221 |
Amortization of discounted liabilities | 72 | 359 | 110 |
Provision for bad debts | 1,035 | 1,216 | 5 |
Reassessment of deferred consideration | (4,120) | (6,050) | |
Stock-based compensation | 7,160 | 5,805 | 4,714 |
Increase (decrease) in deferred income taxes | 2,616 | (561) | 398 |
Loss from equity method investments | 209 | 389 | 49 |
Changes in assets and liabilities associated with operations, net of business combinations: | |||
(Increase) decrease in net receivables | (11,383) | (22,536) | 749 |
(Increase) decrease in inventories | 3,817 | (31,440) | 16,183 |
(Increase) decrease in income tax receivable, net | (6,855) | 2,655 | (12,073) |
(Increase) decrease in prepaid expenses and other assets | (876) | 186 | 647 |
Increase in net operating lease liability | 149 | ||
Increase (decrease) in accounts payable | (7,977) | 9,097 | 3,322 |
Increase (decrease) in deferred revenue | (13,355) | 5,468 | 10,726 |
Increase (decrease) in accrued program costs | 5,797 | (1,705) | (4,529) |
Increase (decrease) in other payables and accrued expenses | (3,337) | 626 | (3,841) |
Net cash provided by operating activities | 9,403 | 11,346 | 59,001 |
Cash flows from investing activities: | |||
Capital expenditures | (12,985) | (8,050) | (6,666) |
Investments | (950) | ||
Acquisitions of businesses and product lines, and intangible assets additions | (41,852) | (19,647) | (81,896) |
Net cash used in investing activities | (54,837) | (27,697) | (89,512) |
Cash flows from financing activities: | |||
Net borrowings under line of credit agreement | 51,900 | 18,975 | 37,025 |
Debt issuance cost | (751) | ||
Cash paid to acquire non-controlling interest | (73) | ||
Payment on deferred consideration | (850) | (26) | |
Net receipt (payment) from the issuance of common stock (sale of stock under ESPP, exercise of stock options and shares purchased for tax withholding) | 283 | 1,717 | (713) |
Repurchase of common stock | (2,604) | (7,287) | |
Payment of cash dividends | (2,323) | (2,199) | (1,600) |
Net cash provided by financing activities | 46,406 | 11,133 | 33,935 |
Net increase (decrease) in cash and cash equivalents | 972 | (5,218) | 3,424 |
Effect of exchange rate changes on cash and cash equivalents | (559) | 49 | 44 |
Cash and cash equivalents at beginning of year | 6,168 | 11,337 | 7,869 |
Cash and cash equivalents at end of year | 6,581 | 6,168 | 11,337 |
Cash paid during the year for: | |||
Interest | 7,121 | 3,319 | 1,500 |
Income taxes, net | $ 9,276 | 8,449 | $ 17,841 |
Non-cash investing activities: | |||
Consideration paid in January 2019 in connection with an asset acquisition completed in 2018 | $ 3,530 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II-A—Valuation and Qualifying Accounts Allowance for Doubtful Accounts Receivable (in thousands) Balance at Additions Charged to Foreign Balance at Fiscal Year Ended Beginning of Period Costs and Expenses Deductions exchange impact End of Period December 31, 2019 $ 1,263 1,035 — 2 $ 2,300 December 31, 2018 $ 46 1,217 — — $ 1,263 December 31, 2017 $ 42 31 (27 ) — $ 46 Inventory Reserve (in thousands) Balance at Balance at Fiscal Year Ended Beginning of Period Additions Deductions End of Period December 31, 2019 $ 1,989 573 (432 ) $ 2,130 December 31, 2018 $ 3,137 476 (1,624 ) $ 1,989 December 31, 2017 $ 3,594 — (457 ) $ 3,137 See accompanying report of independent registered public accounting firm on page 38 of this annual report. |
Description of Business, Basis
Description of Business, Basis of Consolidation, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Consolidation, Basis of Presentation and Significant Accounting Policies | Description of Business, Basis of Consolidation, Basis of Presentation and Significant Accounting Policies American Vanguard Corporation (the “Company” or “AVD”) 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 and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company operates within a single operating category. All dollar amounts reflected in the notes to the consolidated financial statements are presented in thousands, except per share data. Based on similar economic and operational characteristics, the Company’s business is aggregated into one reportable category. Selective enterprise information is as follows: 2019 2018 2017 Net sales: Insecticides $ 153,448 $ 150,595 $ 134,377 Herbicides/soil fumigants/fungicides 181,686 183,350 124,529 Other, including plant growth regulators 67,266 58,360 42,503 Total crop 402,400 392,305 301,409 Non-crop 65,786 61,967 53,638 $ 468,186 $ 454,272 $ 355,047 Gross profit: Crop $ 140,806 $ 150,986 $ 117,892 Non-crop 36,548 31,645 29,500 $ 177,354 $ 182,631 $ 147,392 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 (for example, 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. Reclassifications— Certain prior years’ amounts have been reclassified to conform to the current year’s presentation. Cost of Sales— In addition to normal cost centers (i.e., direct labor, raw materials formulated products), 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, and Freight, Delivery and Warehousing. 2019 2018 2017 Selling $ 45,121 $ 39,585 $ 29,112 General and administrative 46,593 42,981 37,660 Research, product development and regulatory 24,070 26,428 26,076 Freight, delivery and warehousing 35,349 34,616 27,750 $ 151,133 $ 143,610 $ 120,598 Advertising Expense— The Company expenses advertising costs in the period incurred. Advertising expenses, which include promotional costs, are recognized in operating expenses (specifically in selling expenses) in the consolidated statements of operations and were $5,520, $4,865 and $3,020 in 2019, 2018 and 2017, respectively Cash and cash equivalents— The Company’s cash equivalents consist primarily of certificates of deposit with an initial term of less than three months. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Inventories— The Company values its inventories at lower of cost or net realizable value. Cost is determined by the first-in, first-out (“FIFO”) or average cost 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 net realizable value assessments of slow moving and obsolete inventory and other annual adjustments to ensure that our standard costs continue to closely reflect actual cost. The Company recorded an inventory reserve allowance of $2,130 at December 31, 2019, as compared to $1,989 at December 31, 2018 The components of inventories, net of reserve allowance, consist of the following: 2019 2018 Finished products $ 151,917 $ 147,297 Raw materials 11,396 12,598 $ 163,313 $ 159,895 Leases — The Company has operating leases for warehouses, manufacturing facilities, offices, cars, railcars and certain equipment. On January 1, 2019, the Company adopted the accounting and adoption guidance in Accounting Standards Codification (“ASC”) 842, Leases, for its operating leases resulting in the recognition of operating lease right-of-use (“ROU”) assets and lease liabilities on the effective date. The Company measures ROU assets throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. The lease liabilities are measured at the present value of the unpaid lease payments at the lease commencement date. Leases that include both lease and non-lease components are accounted for as a single lease component for each asset class, except for warehouse leases. The minimum payments under operating leases are recognized on a straight-line basis over the lease term in the consolidated statements of operations. Operating lease expenses related to variable lease payments are recognized in cost of sales or as operating expenses in a manner consistent with the nature of the underlying lease and as the events, activities, or circumstances in the lease agreement occur. Leases with a term of less than 12 months are not recognized on the consolidated balance sheets, and the related lease expenses are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The accounting for leases requires management to exercise judgment and make estimates in determining the applicable discount rate, lease term and payments due under a lease. Most of our leases do not provide an implicit interest rate, nor is it available to us from our lessors. As an alternative, the Company uses our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, including publicly available data, in determining the present value of lease payments. The Company also estimated the fair value of the lease and non-lease components for some of our warehouse leases based on market data and cost data. The lease term includes the non-cancellable period of the lease plus any additional periods covered by either an option to extend (or not terminate) that the Company is reasonably certain to exercise. The Company has leases with a lease term ranging from 1 year to 20 years. The operating leases of the Company do not contain major restrictions or covenants such as those relating to dividends or additional financial obligations. Finance leases are immaterial to the consolidated financial statements. There were no lease transactions with related parties during 2019 and 2018. The operating lease expense for the year ended December 31, 2019 was $5,547. Lease expenses related to variable lease payments and short-term leases were immaterial. Additional information related to operating leases are as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 5,398 ROU assets obtained in exchange for new liabilities $ 3,580 The weighted-average remaining lease term and discount rate related to the operating leases as of December 31, 2019 were as follows: Weighted-average remaining lease term (in years) 3.18 Weighted-average discount rate 3.68 % Future minimum lease payments under non-cancellable operating leases as of December 31, 2019 were as follows: December 31, 2019 2020 $ 5,200 2021 3,367 2022 1,754 2023 723 2024 322 Thereafter 794 Total lease payments $ 12,160 Less: imputed interest 753 Total $ 11,407 Amounts recognized in the consolidated balance sheet: Operating lease liabilities, current $ 4,904 Operating lease liabilities, long term $ 6,503 The adoption of ASC 842 did not have a material impact on 2019 operating results. Revenue Recognition — In accordance with Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers ,”, and the related amendments. (“ASC 606”), the Company recognizes revenue when control of the promised goods or services is transferred to its customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s previous revenue recognition methodology under ASC 605, Revenue Recognition . The Company recognizes revenues from the sale of its products, which include insecticides, herbicides, soil fumigants, and fungicides. The Company sells its products to customers, which include distributors and retailers. In addition, the Company recognizes royalty income related to licensing arrangements which qualify as functional licenses rather than symbolic licenses. Upon signing a new licensing agreement, the Company typically receives up-front fees, which are generally characterized as non-refundable royalties. These fees are recognized as revenue upon the execution of the license agreements. Minimum royalty fees are recognized once the Company has an enforceable right for payment. Sales-based royalty fees are typically recognized when the sales occur. The Company calculates and accrues estimated royalties based on the agreement terms and correspondence with the licensees regarding actual sales. Year Ended December 31, 2019 2018 Net sales: Crop: Insecticides $ 153,448 $ 150,595 Herbicides/soil fumigants/fungicides 181,686 183,350 Other, including plant growth regulators 67,266 58,360 Total crop 402,400 392,305 Non-crop 65,786 61,967 Total net sales $ 468,186 $ 454,272 Net sales: U.S. $ 282,225 $ 300,314 International 185,961 153,958 Total net sales $ 468,186 $ 454,272 Timing of revenue recognition: Goods and services transferred at a point in time $ 464,967 $ 453,449 Goods and services transferred over time 3,219 823 Total net sales $ 468,186 $ 454,272 Performance Obligations A performance obligation is a promise in a contract or sales order to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s sales orders have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the sales orders. For sales orders with multiple performance obligations, the Company allocates the sales order’s transaction price to each performance obligation based on its relative stand-alone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. The Company’s performance obligations are satisfied either at a point in time or over time as work progresses. At December 31, 2019, the Company had $6,826 of remaining performance obligations, which are comprised of deferred revenue and services not yet delivered. The Company expects to recognize all these remaining performance obligations as revenue in fiscal 2020. Contract Balances The timing of revenue recognition, billings and cash collections may result in deferred revenue in the consolidated balance sheets. The Company sometimes receives payments from its customers in advance of goods and services being provided in return for early cash incentive programs, resulting in deferred revenues. These liabilities are reported on the consolidated balance sheets at the end of each reporting period. The contract assets in the table below are related to royalties earned on certain licenses granted for the use of the Company’s intellectual property, which are reflected in other receivables in the consolidated balance sheets and recognized at a point in time and remain outstanding as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Contract assets $ 6,091 $ 3,750 Deferred revenue $ 6,826 $ 20,043 Revenue recognized for the year ended December 31, 2019, that was included in the deferred revenue balance at the beginning of 2019 was $20,043. Allowance for Doubtful Accounts— 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 — The Company offers various discounts to customers based on the volume purchased within a defined time period, other pricing adjustments, some grower volume incentives or other key performance indicator driven payments made to distributors, retailers or growers, usually at the end of a growing season. The Company describes these payments as “Programs.” Programs are a critical part of doing business in both the US crop and non-crop chemicals marketplaces. These discount Programs represent variable consideration. In accordance with ASC 606, revenues from sales are recorded at the net sales price, which is the transaction price net of the impact of Programs and includes estimates of variable consideration. Variable consideration includes amounts expected to be paid to its customers estimated using the expected value method. Each quarter management compares individual sale transactions with Programs to determine what, if any, estimated program liabilities have 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, for volume driven payments, make assessments of whether or not customers are tracking in a manner that indicates that they will meet the requirements set out in agreed upon terms and conditions attached to each Program. Following this assessment, management will make adjustments 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, or close to, the end of the crop season, at which time customer performance can be more 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. The Company accrued program costs of $47,699 at December 31, 2019, as compared to $37,349 at December 31, 2018 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 average effective interest rate. Expenditures for minor repairs and maintenance are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and the gain or loss realized on disposition is reflected in operations. All plant and equipment are depreciated using the straight-line method, utilizing the estimated useful property lives. See note 1 for useful lives Intangible Assets — The primary identifiable intangible assets of the Company relate to assets associated with its product and business acquisitions. All of the Company’s intangible assets have finite lives and are 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. Business Combinations — The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statement of operations. In the event that the Company acquires an entity in which the Company previously held a non-controlling investment, the difference between the fair value and carrying value of the investment as of the date of the acquisition is recorded as a gain or loss and recorded within net income (loss) on equity method investments in the consolidated statement of operations. Certain of our acquisition agreements include contingent earn-out arrangements, which are generally based on the achievement of future income thresholds. The fair values of these earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates. For each transaction, the Company estimate the fair value of contingent earn-out payments as part of the initial purchase price and record the estimated fair value of contingent consideration as a liability on the consolidated balance sheets. We review and re-assess the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could be materially different from the initial estimates or prior quarterly amounts. Changes in the estimated fair value of our contingent earn-out liabilities are reported in operating results. Asset Acquisitions — If an acquisition of an asset or group of assets does not meet the definition of a business, the transaction is accounted for as an asset acquisition rather than a business combination. An asset acquisition does not result in the recognition of goodwill and transaction costs are capitalized as part of the cost of the asset or group of assets acquired. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The acquisitions costs are allocated to the assets acquired on a relative fair value basis. Impairment — The carrying values of long-lived assets other than goodwill are reviewed for impairment annually 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 would indicate any impairment of the carrying value of these long-lived assets and no material impairment losses were recorded in 2019 or 2018. The Company reviews goodwill for impairment utilizing either a qualitative or quantitative assessment. If the Company decides that it is appropriate to perform a qualitative assessment and concludes that the fair value of a reporting unit more likely than not exceeds its carrying value, no further evaluation is necessary. If the Company performs a quantitative assessment, the Company compares the fair value of a reporting unit with its carrying amounts and recognizes an impairment charge for the amount that the carrying amount exceeds the reporting unit’s fair value. The Company annually tests goodwill for impairment in beginning of the fourth quarter, or earlier if triggering events occur. The Company did not record any impairment losses in 2019 or 2018. Fair Value of Financial Instruments— The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, 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 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, short-term investments, accounts receivable, long-term investments, accounts payable and accrued expenses approximates fair value because of the relatively short maturity of such instruments. The carrying amount of the Company’s short-term and long-term borrowings, which are considered Level 2 liabilities, approximates fair value based upon current rates and terms available to the Company for similar debt. We measure our contingent earn-out liabilities in connection with acquisitions at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. We may use various valuation techniques depending on the terms and conditions of the contingent consideration including a Monte-Carlo simulation. This simulation uses probability distribution for each significant input to produce hundreds or thousands of possible outcomes and the results are analyzed to determine probabilities of different outcomes occurring. Refer to Note 9 for a reconciliation of the Company’s deferred consideration. Foreign Currency Translation— Certain international operations use the respective local currencies as their functional currency, while other international operations use the U.S. Dollar as their functional currency. The Company considers the U.S. dollar as its reporting currency. Translation adjustments for subsidiaries where the functional currency is its local currency are included in other comprehensive income (loss). Foreign currency transaction gains (losses) resulting from exchange rate fluctuation on transactions denominated in a currency other than the functional currency are reported in earnings. Assets and liabilities of the foreign operations denominated in local currencies are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the weighted average rate of exchange during the period. Translations of intercompany loans of a long-term investment nature are included as a component of translation adjustment in other comprehensive income (loss). 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 consolidated financial statements. At December 31, 2019 and 2018, the Company recorded unrecognized tax benefits of $4,597 and $2,170, respectively. Per Share Information— ASC 260 requires dual presentation of basic earnings per share (“EPS”) and diluted EPS on the face of all consolidated statements of operations. 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: 2019 2018 2017 Numerator: Net income attributable to American Vanguard $ 13,601 $ 24,195 $ 20,274 Denominator: Weighted average shares outstanding—basic 29,030 29,326 29,100 Dilutive effect of stock options and grants 626 722 603 Weighted average shares outstanding—diluted 29,656 30,048 29,703 For the years ended December 31, 2019, 2018, and 2017, no options or grants were excluded from the computation. Use of Estimates— The preparation of consolidated 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 (including those related to litigation), and revenues, at the date that the consolidated financial statements are prepared. Significant estimates relate to the allowance for doubtful accounts, inventory reserves, impairment of long-lived assets, assets acquired and liabilities assumed in connections with business combinations and asset acquisitions, accrued program costs, and stock based compensation and income taxes. Actual results could materially differ from those estimates. Total comprehensive income (loss)— In addition to net income, total comprehensive income (loss) 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, 2019, 2018, and 2017 total comprehensive income (loss) consisted of net income attributable to AVD and foreign currency translation adjustments. Stock-Based Compensation— The Company accounts for stock-based awards to employees and directors pursuant to ASC 718. 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 Statements 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 estimated forfeitures pursuant to ASC 718. Estimated forfeitures recognized in the Company’s consolidated statements of operations reduced compensation expense by $191, $358, and $177 for the years ended December 31, 2019, 2018, and 2017, respectively. The Company estimates that 17.8% of all restricted stock grants and 17.8% of the performance-based restricted shares that are currently subject to vesting will be forfeited. These estimates are reviewed quarterly and revised as necessary. The below tables illustrate the Company’s stock based compensation, unamortized stock-based compensation, and remaining weighted average period for the years ended December 31, 2019, 2018 and 2017. 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. Stock-Based Compensation Unamortized Stock-Based Compensation Remaining Weighted Average Period (years) December 31, 2019 Restricted Stock $ 3,655 $ 5,512 1.9 Unrestricted Stock 411 205 0.4 Performance-Based Restricted Stock 3,094 2,835 1.9 Total $ 7,160 $ 8,552 December 31, 2018 Restricted Stock $ 3,272 $ 5,006 1.3 Unrestricted Stock 385 160 0.4 Performance-Based Restricted Stock 2,148 2,565 1.9 Total $ 5,805 $ 7,731 December 31, 2017 Incentive Stock Options $ 345 $ — — Performance-Based Options 416 — — Restricted Stock 2,355 3,628 1.0 Unrestricted Stock 350 160 0.4 Performance-Based Restricted Stock 1,248 1,642 1.8 Total $ 4,714 $ 5,430 The Company uses the Black-Scholes option-pricing model (“Black-Scholes model”) to value option grants using the following weighted average assumptions (i.e. risk-free interest rate, dividend yield, volatility and average lives). There were no stock options granted during 2019, 2018 or 2017. The expected volatility and expected life assumptions are 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 2019, 2018, and 2017 were $16.84, $20.21, and $16.24, respectively. Recently Issued Accounting Guidance: Accounting standards adopted in 2019: In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 and subsequent amendments, collectively known as ASC 842, Leases. ASC 842 requires recognition of operating leases as lease assets and liabilities on the balance sheet and requires the disclosure of key information about leasing arrangements. The Company elected to adopt ASC 842 by applying the modified transition method and, in addition, elected to use the effective date of January 1, 2019 as the initial date of application. We elected to apply all relevant practical expedients permitted under the transition guidance within the new lease standard with the exception of the practical expedient allowing the use of hindsight in determining the lease term and in assessing impairment. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected an accounting policy to keep leases with an initial term of 12 months or less off the balance sheet and to recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We also elected the practical expedient to not separate lease and non-lease components for all our leases, except for warehouse leases. The adoption of ASC 842 resulted in the recognition of operating lease ROU assets of $12,936 and operating lease liabilities of $12,936 on the effective date as of Jan |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment at December 31, 2019 and 2018 consist of the following: 2019 2018 Estimated useful lives Land $ 2,706 $ 2,548 Buildings and improvements 18,640 17,555 10 to 3 0 Machinery and equipment 116,757 109,064 3 to 15 years Office furniture, fixtures and equipment 6,228 5,655 3 to 10 years Automotive equipment 1,762 1,116 3 to 6 years Construction in progress 5,263 2,513 Total gross value 151,356 138,451 Less accumulated depreciation (94,835 ) (89,199 ) Total net value $ 56,521 $ 49,252 For the years ended December 31, 2019, 2018, and 2017, the Company’s aggregate depreciation expense related to property and equipment was $6,504, $8,142, and $8,154, respectively. For the years ended December 31, 2019, 2018, and 2017, the Company eliminated from assets and accumulated depreciation $868, $4,057 and $6,317 of fully depreciated assets, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (2) Long-Term Debt Long-term debt of the Company at December 31, 2019 and 2018 is summarized as follows: 2019 2018 Revolving line of credit $ 149,300 $ 97,400 Less debt issuance costs (534 ) (729 ) $ 148,766 $ 96,671 Principal payments on long-term debt at December 31, 2019 of $149,300 are due in 2022. As of June 30, 2017, AMVAC Chemical Corporation (“AMVAC”), the Company’s principal operating subsidiary, as borrower, and affiliates (including the Company, AMVAC CV and AMVAC BV), as guarantors and/or borrowers, entered into a Third Amendment to Second Amended and Restated Credit Agreement with a group of commercial lenders led by Bank of the West as agent, swing line lender and Letter of Credit issuer. As of November 27, 2019, AMVAC, as borrower and certain affiliates, on the one hand, entered into a Fourth Amendment to Second Amended and Restated Credit Agreement with a group of commercial lenders led by Bank of the West as agent, swing line lender and Letter of Credit under the terms of which the maximum limits for both Permitted Acquisitions and Investments in Foreign Subsidiaries were increased and new language was added with respect to Eurocurrency Rates, LIBOR Rates and ERISA. The Third and Fourth Amendments, taken together, constitute the Credit Agreement. The Credit Agreement is a senior secured lending facility, consisting of a line of credit of up to $250,000, an accordion feature of up to $100,000 and a maturity date of June 30, 2022. The Credit Agreement contains two key financial covenants; namely, borrowers are required to maintain a Consolidated Funded Debt Ratio of no more than 3.25-to-1 and a Consolidated Fixed Charge Covenant Ratio of at least 1.25-to-1. The Company’s borrowing capacity varies with its financial performance, measured in terms of EBITDA as defined in the Credit Agreement, for the trailing twelve-month period. 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 interest rate on December 31, 2019 was 3.74%. At December 31, 2019, according to the terms of the Credit Agreement and based on our performance against the most restrictive covenant listed above, the Company had the capacity to increase its borrowings by up to $26,977. This compares to an available borrowing capacity of $112,150 as of December 31, 2018. The level of borrowing capacity is driven by three factors: (1) our financial performance, as measured in EBITDA for trailing twelve-month period, (2) the inclusion of proforma EBITDA related to acquisitions completed during the preceding twelve months and (3) the leverage covenant (being the number of times EBITDA the Company may borrow under its credit facility agreement). The Company was in compliance with all the debt covenants as of December 31, 2019. Substantially all of the Company’s assets are pledged as collateral under the Credit Agreement. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (3) Income Taxes The provisions for income taxes are: 2019 2018 2017 Current: Federal $ (235 ) $ 5,641 $ 2,124 State (151 ) 1,777 1,347 Foreign 2,956 2,121 570 Deferred: Federal 2,867 650 160 State 1,548 (365 ) 242 Foreign (1,783 ) (679 ) — $ 5,202 $ 9,145 $ 4,443 Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21.0% in 2019 and 2018 and 35% in 2017 to income before income tax expense, as a result of the following: 2019 2018 2017 Computed tax expense at statutory federal rates $ 3,993 $ 7,054 $ 8,651 Increase (decrease) in taxes resulting from: State taxes, net of federal income tax benefit 1,131 1,627 988 Domestic production deduction — — (150 ) Impact of the enactment of the Tax Cuts and Jobs Act (net) — 1,089 (3,433 ) Income tax credits (819 ) (689 ) (431 ) Foreign tax rate differential 341 (37 ) (1,503 ) Subpart F income — 14 3 (Gain) loss on equity investments — (61 ) 62 Stock based compensation 366 277 262 Global intangible low-taxed income 249 — — Other (59 ) (129 ) (6 ) $ 5,202 $ 9,145 $ 4,443 Income before provision for income taxes and losses on equity investments are: 2019 2018 2017 Domestic $ 15,465 $ 26,124 $ 18,931 Foreign 3,547 7,472 5,922 $ 19,012 $ 33,596 $ 24,853 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, 2019 and 2018 relate to the following: 2019 2018 Deferred tax asset Inventories $ 2,912 $ 3,299 State income taxes 328 53 Program accrual 7,529 7,088 Vacation pay accrual 756 685 Accrued bonuses 599 1,246 Bad debt expense 627 294 Stock compensation 2,755 1,723 NOL carryforward 1,141 580 Tax credits 824 779 Lease liability 3,308 — Other 209 266 Deferred tax asset $ 20,988 $ 16,013 Deferred tax liability Plant and equipment, principally due to differences in depreciation and capitalized interest $ 35,545 $ 30,269 Lease asset 3,265 — Prepaid expenses 1,323 1,107 Deferred tax liability $ 40,133 $ 31,376 Total net deferred tax liability $ 19,145 $ 15,363 The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2019 and 2018: 2019 2018 Balance at beginning of year $ 2,170 $ 2,118 Additions for tax positions related to the current year 155 128 Additions for tax positions related to the prior years 27 24 Additions for tax positions related to acquired businesses 2,458 — Reduction for tax positions related to the prior years (213 ) (100 ) Balance at end of year $ 4,597 $ 2,170 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 years ended December 31, 2019, 2018, and 2017 the Company had recognized approximately $6,877, $2,368, and $2,257 respectively in interest and penalties related to unrecognized tax benefits. It is expected that the amount of unrecognized tax benefits will change within the next twelve 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. The amount of undistributed earnings was $5,315 as of December 31, 2019. Upon distribution of earnings in the form of dividends or otherwise, the Company may still be subject to state income taxes and withholding taxes payable to the various foreign countries. Determination of the unrecognized deferred 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 2016 through 2018 tax years. State income tax returns are subject to examination for the 2015 through 2018 tax years. The Company has other foreign income tax returns subject to examination. The Company has been notified by the Florida Department of Revenue of its intent to examine the Company’s state income tax returns for the years ended December 31, 2012 through December 31, 2013 and December 31, 2015 through December 31, 2018. The Company has also been notified by the Department of Revenue State of Mississippi of its intent to examine the Company’s state income tax returns for the years ended December 31, 2015 through December 31, 2017. Currently the results of these audits are not determinable since the audits are presently in the initial phases. On November 9, 2018, the Company completed the purchase of all of the outstanding shares of TyraTech, Inc., a loss corporation. The Company obtained approximately $3,971 of usable federal net operating losses through the acquisition. The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of NOLs in the event of an “ownership change” of a corporation. During 2019, the Company completed the Section 382 analysis and determined that the utilization of the losses is subject to an annual limitation of $162, with an additional $890 of net operating losses available over the first five years after the ownership change. |
Litigation and Environmental
Litigation and Environmental | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
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 AVD and was approved by the USEPA to control nematodes. DBCP was also applied on banana farms in Latin America. The USEPA suspended registrations of DBCP in October 1979, except for use on pineapples in Hawaii. That 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 it. At present, there are three 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. With respect to Nicaraguan matters, there was no change in status during 2019. As described more fully below, activity in domestic cases during 2019 is as follows. The two cases remaining in Delaware includes 287 plaintiffs who have appealed a lower court finding that the matter was barred by the statute of limitations; these matters (Chavez and Marquinez) have been remanded to the trial court, following a ruling by the Delaware Supreme Court on recognizing the doctrine of cross-jurisdictional tolling. In Hawaii, in the matter of Patrickson, et. al. v. Dole Food Company, the parties have stipulated that the Company shall be dismissed, insofar as it was not a party to the class action case that tolled the statute of limitations. In Adams (also in Hawai’i), there has been no activity since 2014, when the court granted dismissal of co-defendant Dole on the basis of a worker’s compensation bar and gave plaintiffs leave to amend their complaint in light of that ruling. Finally, plaintiffs in Chaverri, which had been dismissed by the Superior Court of the State of Delaware in 2012 for failure to meet the applicable statute of limitations, have brought a motion to vacate the dismissal on the ground that the matter should be subject to trial on the merits under the principle of cross-jurisdictional tolling. That motion was denied and is now on appeal. 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 et al., No. 535/04 and Luis Cristobal Martinez Suazo et al. v. AMVAC et al., No. 679/04 (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 U.S.. 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. With respect to these 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. Delaware DBCP Cases Chavez Marquinez On or about June 18, 2017, the Third Circuit Court submitted a certified question of law to the Delaware Supreme Court on the question of when the tolling period ended. At that time, as mentioned above, the Chavez case had been stayed, pending the ruling of the state’s highest court. The Delaware Supreme Court heard oral argument on January 17, 2018 and, on March 15, 2018 ruled on the matter, finding that federal court dismissal in 1995 on the grounds of forum non conveniens did not end class action tolling, and that such tolling ended when class action certification was denied in Texas state court in June 2010. Thus, both Marquinez and Chavez were remanded to the district court, following the appeals court’s receipt of the ruling. Discovery has commenced, and the court is considering proposed schedules for completing discovery over the next 24 months. At this stage, defendants have identified multiple claimants whose medical examinations disqualify them from discovery. Plaintiffs seek to complete a limited number of medical examinations in each country in order to enable a representative subgroup of claimants to proceed with the litigation, while defendants seek to complete all medical examinations before proceeding. Further, in December 2019, defendants brought a motion to the effect that damages should be adjudicated as per local law (e.g., Ecuadorian). At this stage in the proceedings, the Company does not believe that a loss is probable or reasonably estimable and has not recorded a loss contingency for these matters. Chaverri Hawaiian DBCP Matters Patrickson, et. al. v. Dole Food Company, et al Carcamo Adams v. Dole Food Company et al. B. Other Matters EPA FIFRA/RCRA Matter. In a matter arising from similar facts, USEPA Region 5 contacted the Company’s legal representatives in November 2019 to commence discussions on the resolution of potential civil enforcement claims that could be brought against the Company arising from its reimportation of depleted Thimet containers and the disposition of the contents of such containers in 2015. After negotiation, the Company and USEPA have entered into a consent agreement and final order (“CAFO”), including payment of a civil penalty in an amount that is not material to the Company’s financial performance. Harold Reed v. AMVAC et al The parties have exchanged written discovery, and depositions of persons most knowledgeable took place during the first quarter of 2019. Citing the length of the cases’ pendency and the expense, in December 2019, plaintiff Reed voluntarily dismissed two actions (160600211 and 160600237) for no consideration. With respect to the remaining actions, further depositions are scheduled during mid-year 2020. The |
Employee Deferred Compensation
Employee Deferred Compensation Plan and Employee Stock Purchase Plan | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
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 $1,997, $1,914 and $1,550 in 2019, 2018 and 2017, respectively. During 2001, the Company’s Board of Directors adopted the AVD Employee Stock Purchase Plan (the “ESPP Plan”). The Plan allows eligible employees to purchase shares of common stock through payroll deductions at a discounted price. An original aggregate number of approximately 1,000,000 shares of the Company’s Common Stock, par value $0.10 per share (subject to adjustment for any stock dividend, stock split or other relevant changes in the Company’s capitalization) were allowed to 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 stockholders’ ratification of the extended expiration date. The Plan was amended as of June 6, 2018 following stockholders’ ratification of a ten-year extension to the expiration date (which now stands at December 31, 2028). Under the Plan, as amended as of June 6, 2018, 995,000 shares of the Company’s common stock were authorized. As of December 31, 2019, 2018, and 2017, 643,630, 690,859, and 726,809 shares, respectively, remained available under the plan. The expense recognized under the Plan was immaterial during the years ended December 31, 2019, 2018 and 2017, respectively. Shares of common stock purchased through the Plan in 2019, 2018 and 2017 were 47,229, 35,950 and 34,016, respectively. |
Major Customers and Internation
Major Customers and International Sales | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Major Customers and International Sales | (6) Major Customers and International Sales In 2019, there were three customers that accounted for 18%, 14% and 7%, respectively, of the Company’s consolidated sales. In 2018, there were three customers that accounted for 12%, 9%, and 8% of the Company’s consolidated sales. In 2017, there were three customers that accounted for 13%, 10% and 10% of the Company’s consolidated sales. The Company primarily sells its products to large distributors, buying cooperatives and other co-operative 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 13%, 12% and 6% of the Company’s receivables as of December 31, 2019. The Company had three significant customers who each accounted for approximately 8%, 7% and 5% of the Company’s receivables as of December 31, 2018. The Company has long-standing relationships with its customers and the Company considers its overall credit risk for accounts receivables to be moderate. International sales for 2019, 2018 and 2017 were as follows: 2019 2018 2017 South and Central America $ 111,106 $ 86,172 $ 25,748 Mexico 28,835 24,578 16,030 Asia 15,554 14,828 28,880 Canada 11,637 3,403 4,083 Europe 6,889 11,059 10,700 Africa 6,750 8,027 7,893 Australia 2,798 2,635 4,334 Middle East 2,392 3,256 1,237 $ 185,961 $ 153,958 $ 98,905 |
Royalty Expenses
Royalty Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Royalty Expenses | (7) Royalty expenses The Company has two licensing agreements that require minimum annual royalty payments. Those agreements related to the acquisition of certain products. The Company also has two other licensing arrangements in which royalties are paid based on percentage of annual sales. Certain royalty agreements contain confidentiality covenants. Royalty expenses were $137, $86 and $81 for 2019, 2018 and 2017, respectively. |
Product and Business Acquisitio
Product and Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Product and Business Acquisitions | (8) Product and Business Acquisitions During the year ended December 31, 2019, the Company completed three acquisitions in exchange for a total cash consideration at closing of $37,972, net of cash acquired $981 and deferred consideration of $3,051. In addition, the Company assumed liabilities of $19,867 and capitalized costs of $14 incurred in the asset acquisition process. The total asset value of $60,904 was allocated as follows: product rights $13,279, trade names $5,452, customer relationships $5,705, goodwill $22,652, working capital and fixed assets $10,432, and indemnification assets $3,384. On January 10, 2019, the Company completed the acquisition of all of the outstanding shares of stock of two affiliated businesses, Defensive and Agrovant, which are located in Jaboticabal in the state of Sao Paul, Brazil. At closing the Company paid cash consideration of $20,679, which was net of cash acquired of $981, deferred consideration of $3,051 including contingent consideration dependent on certain financial results for 2019, and liabilities assumed of $18,160, including liabilities of $9,111 related to income tax matters. These companies were founded in 2000 and are suppliers of crop protection products and micronutrients with focus on the fruit and vegetable market segments. The acquisition was accounted for as a business combination and the total asset value of $41,890 was allocated as follows: trade name $1,010, customer relationships $5,705, goodwill $22,652, working capital and fixed assets $9,139 and indemnification assets $3,384. The operating results of the acquired businesses are included in our consolidated statement of operations from the date of acquisition. The goodwill recognized is expected to be deductible for income tax purposes, subject to merging AMVAC do Brasil with Defensive and Agrovant. On July 1, 2019, the Company completed a product acquisition for cash consideration in the amount of $7,293 and the assumption of a liability in the amount of $300. The acquisition was accounted for as an asset acquisition and the acquired assets consist of product rights $5,108, trade names $1,200, and inventory $1,293. Costs of $8 incurred in the asset acquisition process were capitalized. On December 20, 2019, the Company completed a product acquisition for cash consideration in the amount of $10,000 and the assumption of a liability in the amount of $1,407. The acquisition was accounted for as an asset acquisition and the acquired assets consist of product rights $8,171 and trade names $3,242. Costs of $6 incurred in the asset acquisition process were capitalized. During the year ended December 31, 2018, the Company completed four acquisitions in exchange for a total cash consideration at closing of $19,851, net of cash acquired $1,600, cash consideration paid in January 2019 $3,530 and the fair value of the Company’s pre-existing ownership position $2,044. In addition, the Company assumed liabilities of $1,750 and capitalized costs of $108 incurred in the asset acquisition process. The total value of $27,283 was allocated as follows: product registrations and product rights $12,720, trade names, trademarks and patents $2,678, customer lists $739, goodwill $3,927, inventory $5,461, other working capital $121 and property, plant and equipment $27, and deferred tax assets $1,610. The acquisition of TyraTech Inc. (“TyraTech”) was accounted for as a business combination. The Company acquired 65.62% of TyraTech’s issued and outstanding shares on November 8, 2018 in exchange for cash consideration of $2,154 at closing, net of cash acquired of $1,600, and liabilities assumed of $1,750. Together with the Company’s pre-existing ownership of 34.38% with a fair value of $2,044, TyraTech became a wholly owned subsidiary of the Company and was delisted from the AIM market of the London Stock Exchange. TyraTech is a life sciences company focused on nature-derived insect and parasite control products. Their patented technology platform leverages synergistic essential oil combination to target invertebrate pest receptors that are not active in humans and other mammals. The assessment of the purchase price allocation related to the business combination was completed in 2019. The purchase price allocation is as follows: working capital of $115, intangible assets of $180 and goodwill of $3,927, property, plant and equipment of $27, other assets of $89, and deferred tax assets of $1,610. Goodwill is not expected to be deductible for income tax purposes. The goodwill consists largely of acquired workforce and tax related matters. As a result of this acquisition, the Company was required to step up the value of its ownership and recorded a gain of $1,463. The acquired business was included in the Company’s consolidated financial statements from the date of acquisition. Three of the 2018 acquisitions mentioned previously related to product lines, acquired from E.I DuPont et Nemours and Company (one) and Bayer CropScience (two), were purchased for total cash consideration at closing of $21,335, including transaction costs of $108, and $3,530 paid in January 2019. These acquisitions were accounted for as asset acquisitions because the Company did not acquire any substantive processes. Of this amount, $5,378 was recorded to inventory and the remaining to intangibles. One of the asset acquisitions includes contingent consideration in the form of potential milestone payments that could amount to a maximum additional payment of $12,500. These milestone payments will be recorded as additional acquisition costs upon the point in time the milestone criteria are met, if applicable. No such milestones were achieved in 2018 or 2019. The purchase price allocation was completed as at December 31, 2018 and the acquired product lines were included in the Company’s consolidated financial statements from the date of acquisition. Cash paid at closing for the asset acquisitions and business combination was funded through our revolving line of credit. The Company considers that the acquisitions completed during 2019 and 2018 are immaterial individually and in the aggregate to the accompanying consolidated financial statements, and accordingly pro-forma financial information is not included. During the year ended December 31, 2017, the Company completed acquisitions with a total combined purchase consideration, net of cash acquired, of $92,555 including cash paid at closing in the amount of $81,896 and deferred consideration of $10,659. At closing the Company recorded $12,814 related to tax matters associated with the acquisitions. At December 31, 2017 the purchase price was provisionally allocated as follows: product registrations and product rights $55,127, trade names and trademarks $9,500, customer relationships and customer lists $3,700, goodwill $22,184, working capital $14,679 and property, plant and equipment $512. The purchase price allocation was finalized during 2018, which resulted in a reduction in goodwill of $348. The following unaudited pro forma information presents a summary of the Company’s combined results of operations for the year ended December 31, 2017, as if the 2017 business acquisitions had occurred on January 1, 2017. The following pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transaction been effected on the assumed date, nor is it necessarily an indication of trends in future results for a number of reasons. Consequently, actual results will differ from the unaudited pro forma financial information. Year ended December 31, 2017 Pro forma net sales $ 458,793 Pro forma net income 24,540 Pro forma earnings per common share – basic 0.84 Pro forma earnings per common share – assuming dilution 0.83 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Intangible Assets and Goodwill | (9) Intangible Assets and Goodwill 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, 2016 $ 121,433 Additions during fiscal 2017 68,327 Impact of movement in exchange rates (6 ) Amortization expense (8,804 ) Intangible assets at December 31, 2017 180,950 Additions during fiscal 2018 16,429 Impact of movement in exchange rates (45 ) Amortization expense (10,751 ) Intangible assets at December 31, 2018 186,583 Additions during fiscal 2019 25,368 Write offs (264 ) Impact of movement in exchange rates (1,158 ) Amortization expense (12,152 ) Intangible assets at December 31, 2019 $ 198,377 Goodwill at December 31, 2018 $ 25,790 Net additions during fiscal 2019 22,652 Impact of movement in exchange rates (1,885 ) Goodwill at December 31, 2019 $ 46,557 Intangible assets and goodwill at December 31, 2019 $ 244,934 The following schedule represents the gross carrying amount and accumulated amortization of intangible assets and goodwill. Product rights and trademarks are amortized over their expected useful lives of 25 years. Customer lists are amortized over their expected useful lives of nine to ten years. 2019 2018 Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Product Rights $ 252,786 $ 89,204 $ 163,582 $ 235,684 $ 79,627 $ 156,057 Trademarks 32,795 6,633 26,162 30,483 5,337 25,146 Customer Lists 12,028 3,395 8,633 7,529 2,149 5,380 Total intangibles assets 297,609 99,232 198,377 273,696 87,113 186,583 Goodwill 46,557 — 46,557 25,790 — 25,790 Total intangibles and goodwill $ 344,166 $ 99,232 $ 244,934 $ 299,486 $ 87,113 $ 212,373 The following schedule represents future amortization charges related to intangible assets: Year ending December 31, Amount 2020 $ 12,768 2021 12,619 2022 12,498 2023 11,988 2024 11,690 Thereafter 136,814 $ 198,377 The following schedule represents the Company’s deferred consideration liability under acquisitions agreements: Amount Obligations under acquisition agreements at December 31, 2016 $ 592 Additional obligations acquired 10,659 Accretion of discounted liabilities 109 Payments on existing obligations (26 ) Obligations under acquisition agreements at December 31, 2017 11,334 Adjustment to deferred consideration within the measurement period (1,697 ) Reassessment of deferred consideration (6,050 ) Accretion of discounted liabilities 345 Payments on existing obligations (66 ) Obligations under acquisition agreements at December 31, 2018 3,866 Additional obligations acquired 3,051 Reassessment of deferred consideration (4,120 ) Accretion of discounted liabilities 72 Payments on existing obligations (850 ) Foreign exchange effect (229 ) Obligations under acquisition agreements at December 31, 2019 $ 1,790 As of December 31, 2019, the $1,790 in remaining deferred consideration is included in other liabilities. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | (10) Commitments We enter into various obligations in the ordinary course of business, generally of a short-term nature. Those that are binding primarily relate to purchase commitments for inventory and orders submitted for equipment for our production plants as well as service agreements. |
Research and Development
Research and Development | 12 Months Ended |
Dec. 31, 2019 | |
Research And Development [Abstract] | |
Research and Development | (11) Research and Development Research and development expenses which are included in operating expenses were $8,906, $9,164 and $8,455 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Equity Plan Awards
Equity Plan Awards | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Plan Awards | (12) Equity Plan Awards Under the Company’s Equity Incentive Plan of 1993, as amended (“the Plan”), all employees are eligible to receive non-assignable and non-transferable restricted stock, options to purchase common stock, and other forms of equity. As of December 31, 2019, the number of securities remaining available for future issuance under the Plan is 1,171,059. Incentive Stock Option Plans (“ISOP”) Under the terms of the Company’s ISOP, under which options to purchase 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 2019, 2018 and 2017, no options were granted. Option activity within each plan is as follows: Incentive Stock Option Plans Weighted Average Price Per Share Exercisable Weighted Average Price Per Share Balance outstanding, December 31, 2016 541,905 $ 9.33 $ 7.97 Options exercised (55,979 ) $ 8.37 Options forfeited (13,143 ) 11.49 Balance outstanding, December 31, 2017 472,783 $ 9.38 $ 9.38 Options exercised (88,719 ) 10.62 Balance outstanding, December 31, 2018 384,064 $ 9.10 $ 9.10 Options exercised (51,241 ) 8.87 Balance outstanding, December 31, 2019 332,823 $ 9.14 $ 9.14 Information relating to stock options at December 31, 2019 summarized by exercise price is as follows: Outstanding Weighted Average Exercisable Weighted Average Exercise Price Per Share Shares Remaining Life (Months) Exercise Price Shares Exercise Price Incentive Stock Option Plan: $7.50 195,850 11 $ 7.50 195,850 $ 7.50 $11.32-$14.75 136,973 58 $ 11.48 136,973 $ 11.48 332,823 30 $ 9.14 332,823 $ 9.14 During 2017, the Company recognized stock-based compensation expense related to incentive stock options of $345. During 2019 and 2018, the Company did not recognized stock-based compensation expense related to incentive stock options. The weighted average exercise prices for options granted and exercisable and the weighted average remaining contractual life for options outstanding as of December 31, 2019 and 2018 was as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Months) Intrinsic Value (thousands) As of December 31, 2019: Incentive Stock Option Plans: Outstanding 332,823 $ 9.14 30 $ 3,439 Vested 332,823 $ 9.14 30 $ 3,439 Exercisable 332,823 $ 9.14 30 $ 3,439 As of December 31, 2018: Incentive Stock Option Plans: Outstanding 384,064 $ 9.10 42 $ 2,338 Vested 384,064 $ 9.10 42 $ 2,338 Exercisable 384,064 $ 9.10 42 $ 2,338 The total intrinsic value of options exercised during 2019, 2018 and 2017 was $393, $955, and $545, respectively. Cash received from stock options exercised during 2019, 2018, and 2017 was $454, $951, and $468, respectively. Nonstatutory Stock Options (“NSSO”) The Company did not grant any non-statutory stock options during the three years ended December 31, 2019. Common Stock Grants During 2019, the Company issued a total of 341,653 shares of common stock to certain employees and non-executive board members. Of these, 33,973 shares vest immediately, 500 shares will vest 6 months from the employee’s employment date, 1,000 shares will vest one year from the employee’s employment date, 500 shares will vest two years from the employee’s employment date, 15,001 shares will vest three years from the employee’s employment date, and majority of the balance will cliff vest after three years of service. The fair values of the grants range from $13.09 to $17.34 per share based on the publicly traded share prices as of the market close on the date of grants. The total fair value of $5,754 is being recognized over the vesting period, which is representative of the related service periods. During 2019, 60,778 shares of common stock granted to employees were forfeited. During 2018, the Company issued a total of 282,030 shares of common stock to certain employees and non-executive board members. Of these, 25,312 shares vest immediately, 1,017 shares will vest 6 months from the employee’s employment date, 1,017 shares will vest eighteen months from the employee’s employment date, 5,250 shares will vest two years from the employee’s employment date, and majority of the balance will cliff vest after three years of service. The fair values of the grants range from $16.85 to $23.60 per share based on the publicly traded share prices as of the market close on the date of grants. The total fair value of $5,651 is being recognized over the vesting period, which is representative of the related service periods. During 2018, 33,269 shares of common stock granted to employees were forfeited A status summary of non-vested shares as of December 31, 2019 and 2018, are presented below: December 31, 2019 December 31, 2018 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested shares at January 1 st 587,210 $ 17.59 391,753 $ 15.61 Granted 341,653 16.84 282,030 20.21 Vested (148,240 ) 14.99 (53,304 ) 17.06 Forfeited (60,778 ) 18.12 (33,269 ) 17.29 Nonvested shares at December 31 st 719,845 $ 17.67 587,210 $ 17.59 During 2019, 2018 and 2017, the Company recognized stock-based compensation expense related to restricted shares of $4,066, $3,657, and $2,705, respectively. Performance-Based Stock Grants During the year ended December 31, 2019, the Company issued a total of 137,557 performance-based shares to employees. The shares granted during 2019 have an average fair value of $16.96. The fair value was determined by using the publicly traded share price as of the market close on the date of grant and Monte Carlo Valuation method. The Company will recognize as expense the value of the performance-based shares over the required service period from grant date. The shares will cliff vest on March 28, 2022 with a measurement period commencing January 1, 2019 and ending December 31, 2021. Eighty percent of these performance-based shares are based upon the financial performance of the Company, specifically, an earnings before income taxes (“EBIT”) goal weighted at 50% and a net sales goal weighted at 30%. The remaining 20% of performance-based shares are based upon AVD stock price appreciation over the same performance measurement period. The EBIT and net sales goals measure the relative growth of the Company’s EBIT and net sales for the performance measurement period, as compared to the median growth of EBIT and net sales for an identified peer group. The stockholder 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, identified in the Company’s 2018 Proxy Statement. All parts of these awards vest in three years but are subject to reduction to a minimum (or even zero) for recording less than the targeted performance and to increase to a maximum of 200% for achieving in excess of the targeted performance. During 2019, the Company concluded that the performance measure based on EBIT and net sales for the performance-based shares granted in 2016 and 2017, when compared to the peer group, was both met at 200% of targeted performance and all related additional expenses were recorded as of December 31, 2019. The 2016 and 2017 performance shares based on market price was met at 125% and 50%, respectively, however, the market condition is reflected in the grant date fair value valuation and no additional expenses were recognized. As a result, 42,368 additional shares were earned since the Company achieved performance targets when compared to the peer group. During the year ended December 31, 2018, the Company issued a total of 130,332 performance-based shares to employees. The shares granted during 2018 have an average fair value of $18.74. The fair value was determined by using the publicly traded share price as of the market close on the date of grant. The Company is recognizing as expense the value of the performance-based shares over the required service period from grant date. The shares will cliff vest on March 9, 2021 with a measurement period commencing January 1, 2018 and ending December 31, 2020. Eighty percent of these performance-based shares are based upon the financial performance of the Company, specifically, an earnings before income taxes (“EBIT”) goal weighted at 50% and a net sales goal weighted at 30%. The remaining 20% of performance-based shares are based upon AVD stock price appreciation over the same performance measurement period. The EBIT and net sales goals measure the relative growth of the Company’s EBIT and net sales for the performance measurement period, as compared to the median growth of EBIT and net sales for an identified peer group. The stockholder 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, identified in the Company’s 2017 Proxy Statement. All parts of these awards vest in three years but are subject to reduction to a minimum (or even zero) for recording less than the targeted performance and to increase to a maximum of 200% for achieving in excess of the targeted performance. During the year ended December 31, 2017, the Company issued a total of 128,594 performance-based shares to employees. The shares granted during 2017 have an average fair value of $15.43. The fair value was determined by using the publicly traded share price as of the date of grant. The Company recognized as expense the value of the performance-based shares over the required service period from grant date. The shares will cliff vest on February 8, 2020 with a measurement period commencing January 1, 2017 and ending December 31, 2019. Eighty percent of these performance-based shares are based upon the financial performance of the Company, specifically, an earnings before income taxes (“EBIT”) goal weighted at 50% and a net sales goal weighted at 30% . The remaining 20% of performance-based shares are based upon AVD stock price appreciation over the same performance measurement period. The EBIT and net sales goals measure the relative growth of the Company’s EBIT and net sales for the performance measurement period, as compared to the median growth of EBIT and net sales for an identified peer group. The stockholder 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, identified in the Company’s 2016 Proxy Statement. All parts of these awards vest in three years but are subject to reduction to a minimum (or even zero) for recording less than the targeted performance and to increase to a maximum of 200% for achieving in excess of the targeted performance. As of December 31, 2019, the performance-based shares related to EBIT and net sales have an average fair value of $17.34 per share. The fair value was determined by using the publicly traded share price as of the market close on the date of grant. The performance-based shares related to the Company’s stock price have an average fair value of $15.46 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. As of December 31, 2018, the performance-based shares related to EBIT and net sales have an average fair value of $19.95 per share. The fair value was determined by using the publicly traded share price as of the market close on the date of grant. The performance-based shares related to the Company’s stock price have an average fair value of $16.49 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. As of December 31, 2017, the performance-based shares related to EBIT and net sales have an average fair value of $16.10 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 $12.60 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. During 2019, 2018 and 2017, the Company recognized stock-based compensation expense related to performance-based shares of $3,094, $2,148, and $1,248, respectively. In 2019, the Company assessed the likelihood of achieving the performance measures based on peer group information currently available for the performance-based shares granted in 2018. Based on the performance thus far, the Company has concluded that it is likely that the performance measure based on EBIT and net sales will be met at 125% of targeted performance and have recorded the related additional expense in 2019. The performance shares based on market price are expected to be met at 125% of targeted performance. The effect of market conditions for performance shares based on market are included in the grant date fair value valuation and no additional expenses were recognized in 2019. As of December 31, 2019, the Company had approximately $2,835 of unamortized stock-based compensation expenses related to unvested performance-based shares. This amount will be recognized over the weighted-average period of 1.9 years. This projected expense will change if any performance-based shares are granted or cancelled prior to the respective reporting periods, changes to expected vesting for performance-based shares or if there are any changes required to be made for estimated forfeitures. A summary of non-vested shares as of December 31, 2019 and 2018, is presented below: December 31, 2019 December 31, 2018 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested shares at January 1 st 287,077 $ 16.87 186,057 $ 14.93 Granted 137,557 16.96 130,332 18.74 Additional granted based on performance achievement 42,368 12.97 — — Vested (92,572 ) 14.78 (22,857 ) 11.90 Forfeited (28,998 ) 17.70 (6,455 ) 16.22 Nonvested shares at December 31 st 345,432 $ 16.92 287,077 $ 16.87 Performance Incentive Stock Option Plan For the three years ended December 31, 2019, the Company did not grant any employees performance incentive stock options to acquire shares of common stock. Performance option activity is as follows: Incentive Stock Option Plans Weighted Average Price Per Share Exercisable Weighted Average Price Per Share Balance outstanding, December 31, 2017 81,666 $ 11.49 $ 11.49 Additional vesting based on performance 77,598 11.49 11.49 Options exercised (18,853 ) 11.49 11.49 Balance outstanding, December 31, 2018 140,411 $ 11.49 $ 11.49 Options exercised (19,629 ) 11.49 11.49 Balance outstanding, December 31, 2019 120,782 $ 11.49 $ 11.49 Information relating to performance stock options at December 31, 2019 is summarized by exercise price is as follows: Outstanding Weighted Average Exercisable Weighted Exercise Price Per Share Shares Remaining Life (Months) Exercise Price Shares Exercise Price Performance Incentive Stock Option Plan: 120,782 60 $ 11.49 120,782 $ 11.49 The weighted average exercise price for performance options granted and exercisable and the weighted average remaining contractual life for performance options outstanding as of December 31, 2019 and 2018 was as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Months) Intrinsic Value (thousands) As of December 31, 2019: Performance Incentive Stock Option Plans: Outstanding 120,782 $ 11.49 60 $ 964 Vested 120,782 $ 11.49 60 $ 964 Exercisable 120,782 $ 11.49 60 $ 964 As of December 31, 2018: Performance Incentive Stock Option Plans: Outstanding 140,411 $ 11.49 72 $ 520 Vested 140,411 $ 11.49 72 $ 520 Exercisable 140,411 $ 11.49 72 $ 520 During 2017, the Company recognized stock-based compensation expense related to performance incentive stock options of $416. During 2019 and 2018, the Company did not recognize stock-based compensation expense related to performance incentive stock options. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | (13) Accumulated Other Comprehensive Loss The following table lists the beginning balance, annual activity and ending balance of foreign currency translation adjustment included as a component of accumulated other comprehensive loss: Balance, December 31, 2016 $ (4,851 ) Foreign currency translation adjustment 344 Balance, December 31, 2017 (4,507 ) Foreign currency translation adjustment — Balance, December 31, 2018 (4,507 ) Foreign currency translation adjustment (1,191 ) Balance, December 31, 2019 $ (5,698 ) |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Method Investments | (14) Equity Method Investments The Company utilized the equity method of accounting with respect to its investment in TyraTech, a Delaware corporation that specialized in developing, marketing and selling pesticide products containing essential oils and other natural ingredients, until the Company acquired all of TyraTech’s remaining outstanding shares as of November 8, 2018 (see Note 8). For the period from January 1, 2018 to November 8, 2018, and for the year ended December 31, 2017, the Company recognized losses of $1,424, and $177, respectively on its equity method investment. In addition, the Company recognized a gain in the amount of $1,463 in connection with the re-measurement of its pre-existing equity interest in TyraTech at fair value as of the acquisition date of the remaining outstanding shares. As of December 31, 2017, the Company’s ownership position in TyraTech was approximately 15.11%. On August 2, 2016, AMVAC BV entered into a joint venture with Huifeng. The entity, Hong Kong JV, is intended to focus on activities such as market access and technology transfer between the two members. AMVAC BV is a 50% owner of the entity. No material contributions were made subsequent to the initial investment. On June 27, 2017, both AMVAC BV and Huifeng (Hong Kong) Ltd. made individual capital contributions of $950 to the Hong Kong JV. As of December 31, 2019 and 2018, the Company’s ownership position in the Hong Kong JV was 50%. The Company utilizes the equity method of accounting with respect to this investment. On July 7, 2017, the Hong Kong JV purchased the shares of Profeng Australia, Pty Ltd. (“Profeng”), for a total consideration of $1,900. The purchase consists of Profeng Australia, Pty Ltd Trustee and Profeng Australia Unit Trust. Both Trust and Trustee were previously owned by Huifeng via its wholly owned subsidiary Huifeng (Hong Kong) Ltd . For the years ended December 31, 2019, 2018 and 2017, the Company recognized a (loss) and income of ($209), ($356) and $128, respectively, as a result of the Company’s ownership position in the Hong Kong JV. At December 31, 2019 and 2018, the carrying value of the Company’s investment in the Hong Kong JV was $513 and $722, respectively. |
Equity Investment
Equity Investment | 12 Months Ended |
Dec. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Equity Investment | (15) Equity Investment In February 2016, AMVAC BV made an equity investment of $3,283 in Biological Products for Agriculture (“Bi-PA”). Bi-PA develops biological plant protection products that can be used for the control of pests and disease of agricultural crops. As of December 31, 2019 and 2018, the Company’s ownership position in Bi-PA was 15%. Since this investment does not have readily determinable fair value, the Company has elected to measure the investment at cost less impairment, if any, and also record an increase or decrease for changes resulting from observable price changes in orderly transactions for the identical or a similar investment of Bi-PA. The Company periodically reviews the investment for possible impairment. There was no impairment or observable price changes on the investment during the years ended December 31, 2019 and 2018. The investment is not material and is recorded within other assets on the consolidated balance sheets. |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Share Repurchase Program | (16) Share Repurchase Program On November 5, 2018, pursuant to a Board of Directors resolution, the Company announced its intention to repurchase an aggregate number of shares with a total purchase price not to exceed $20,000 of its common stock, par value $0.10 per share, in the open market, depending upon market conditions over the short to mid-term. The Shares Repurchase Program expired on March 8, 2019. During 2019 and 2018, the Company purchased 158,048 and 452,358 shares for a total of $2,604 and $7,287 at an average price of $16.48 and $16.11 per share, respectively. The table below summarizes the number of shares of our common stock that were repurchased during the years ended December 31, 2019 and 2018. The shares and respective amount are recorded as treasury shares on the Company’s consolidated balance sheets. Month ended Total number of shares purchased Average price paid per share Total amount paid January 31, 2019 158,048 $ 16.48 $ 2,604 Total number of shares repurchased 158,048 $ 16.48 $ 2,604 November 30, 2018 196,858 $ 17.10 $ 3,366 December 31, 2018 255,500 15.35 3,921 Total number of shares repurchased 452,358 $ 16.11 $ 7,287 |
Quarterly Data-Unaudited
Quarterly Data-Unaudited | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data-Unaudited | (17) Quarterly Data—Unaudited The following tables contain selected unaudited statement of operations information for each quarter of 2019 and 2018. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. March 31 June 30 September 30 December 31 Quarterly Data—2019 Net sales $ 99,676 $ 113,104 $ 124,884 $ 130,521 Gross profit 41,702 41,653 47,463 46,536 Net income attributable to American Vanguard 3,906 3,106 3,153 3,436 Basic net income per share 0.13 0.11 0.11 0.12 Diluted net income per share 0.13 0.11 0.11 0.12 Quarterly Data—2018 Net sales $ 104,108 $ 107,046 $ 111,780 $ 131,338 Gross profit 41,051 43,297 45,300 52,983 Net income attributable to American Vanguard 4,655 5,599 6,525 7,416 Basic net income per share 0.16 0.19 0.22 0.25 Diluted net income per share 0.16 0.19 0.22 0.25 Note: Totals may not agree with full year amounts due to rounding and separate calculations each quarter. |
Forward Cover Contract
Forward Cover Contract | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Forward Cover Contract | (18) Forward Cover Contract As of October 26, 2018, the Company entered into a foreign exchange forward cover contract in connection with the anticipated acquisition of the Defensive and Agrovant businesses in Brazil. The forward cover contract’s settlement amount was determined based on the BRL/USD exchange rate on December 27, 2018 and the Company was required to make a payment (and record a loss) under the terms of the contract in the amount of $1,401. Under the accounting rules for derivative financial instruments, a gain or loss related to a contract, which is entered into in connection with an anticipated business combination, is recorded in the statements of operations. There were no similar losses or gains recorded in either 2019 or 2017. |
Description of Business, Basi_2
Description of Business, Basis of Consolidation, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications— Certain prior years’ amounts have been reclassified to conform to the current year’s presentation. |
Cost of Sales | Cost of Sales— In addition to normal cost centers (i.e., direct labor, raw materials formulated products), the Company also includes such cost centers as Health and Safety, Environmental, Maintenance and Quality Control in cost of sales. |
Operating Expenses | Operating Expenses— Operating expenses include cost centers for Selling, General and Administrative, Research, Product Development, and Regulatory, and Freight, Delivery and Warehousing. 2019 2018 2017 Selling $ 45,121 $ 39,585 $ 29,112 General and administrative 46,593 42,981 37,660 Research, product development and regulatory 24,070 26,428 26,076 Freight, delivery and warehousing 35,349 34,616 27,750 $ 151,133 $ 143,610 $ 120,598 |
Advertising Expense | Advertising Expense— The Company expenses advertising costs in the period incurred. Advertising expenses, which include promotional costs, are recognized in operating expenses (specifically in selling expenses) in the consolidated statements of operations and were $5,520, $4,865 and $3,020 in 2019, 2018 and 2017, respectively |
Cash and Cash Equivalents | Cash and cash equivalents— The Company’s cash equivalents consist primarily of certificates of deposit with an initial term of less than three months. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. |
Inventories | Inventories— The Company values its inventories at lower of cost or net realizable value. Cost is determined by the first-in, first-out (“FIFO”) or average cost 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 net realizable value assessments of slow moving and obsolete inventory and other annual adjustments to ensure that our standard costs continue to closely reflect actual cost. The Company recorded an inventory reserve allowance of $2,130 at December 31, 2019, as compared to $1,989 at December 31, 2018 The components of inventories, net of reserve allowance, consist of the following: 2019 2018 Finished products $ 151,917 $ 147,297 Raw materials 11,396 12,598 $ 163,313 $ 159,895 |
Leases | Leases — The Company has operating leases for warehouses, manufacturing facilities, offices, cars, railcars and certain equipment. On January 1, 2019, the Company adopted the accounting and adoption guidance in Accounting Standards Codification (“ASC”) 842, Leases, for its operating leases resulting in the recognition of operating lease right-of-use (“ROU”) assets and lease liabilities on the effective date. The Company measures ROU assets throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. The lease liabilities are measured at the present value of the unpaid lease payments at the lease commencement date. Leases that include both lease and non-lease components are accounted for as a single lease component for each asset class, except for warehouse leases. The minimum payments under operating leases are recognized on a straight-line basis over the lease term in the consolidated statements of operations. Operating lease expenses related to variable lease payments are recognized in cost of sales or as operating expenses in a manner consistent with the nature of the underlying lease and as the events, activities, or circumstances in the lease agreement occur. Leases with a term of less than 12 months are not recognized on the consolidated balance sheets, and the related lease expenses are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The accounting for leases requires management to exercise judgment and make estimates in determining the applicable discount rate, lease term and payments due under a lease. Most of our leases do not provide an implicit interest rate, nor is it available to us from our lessors. As an alternative, the Company uses our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, including publicly available data, in determining the present value of lease payments. The Company also estimated the fair value of the lease and non-lease components for some of our warehouse leases based on market data and cost data. The lease term includes the non-cancellable period of the lease plus any additional periods covered by either an option to extend (or not terminate) that the Company is reasonably certain to exercise. The Company has leases with a lease term ranging from 1 year to 20 years. The operating leases of the Company do not contain major restrictions or covenants such as those relating to dividends or additional financial obligations. Finance leases are immaterial to the consolidated financial statements. There were no lease transactions with related parties during 2019 and 2018. The operating lease expense for the year ended December 31, 2019 was $5,547. Lease expenses related to variable lease payments and short-term leases were immaterial. Additional information related to operating leases are as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 5,398 ROU assets obtained in exchange for new liabilities $ 3,580 The weighted-average remaining lease term and discount rate related to the operating leases as of December 31, 2019 were as follows: Weighted-average remaining lease term (in years) 3.18 Weighted-average discount rate 3.68 % Future minimum lease payments under non-cancellable operating leases as of December 31, 2019 were as follows: December 31, 2019 2020 $ 5,200 2021 3,367 2022 1,754 2023 723 2024 322 Thereafter 794 Total lease payments $ 12,160 Less: imputed interest 753 Total $ 11,407 Amounts recognized in the consolidated balance sheet: Operating lease liabilities, current $ 4,904 Operating lease liabilities, long term $ 6,503 The adoption of ASC 842 did not have a material impact on 2019 operating results. |
Revenue Recognition | Revenue Recognition — In accordance with Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers ,”, and the related amendments. (“ASC 606”), the Company recognizes revenue when control of the promised goods or services is transferred to its customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s previous revenue recognition methodology under ASC 605, Revenue Recognition . The Company recognizes revenues from the sale of its products, which include insecticides, herbicides, soil fumigants, and fungicides. The Company sells its products to customers, which include distributors and retailers. In addition, the Company recognizes royalty income related to licensing arrangements which qualify as functional licenses rather than symbolic licenses. Upon signing a new licensing agreement, the Company typically receives up-front fees, which are generally characterized as non-refundable royalties. These fees are recognized as revenue upon the execution of the license agreements. Minimum royalty fees are recognized once the Company has an enforceable right for payment. Sales-based royalty fees are typically recognized when the sales occur. The Company calculates and accrues estimated royalties based on the agreement terms and correspondence with the licensees regarding actual sales. Year Ended December 31, 2019 2018 Net sales: Crop: Insecticides $ 153,448 $ 150,595 Herbicides/soil fumigants/fungicides 181,686 183,350 Other, including plant growth regulators 67,266 58,360 Total crop 402,400 392,305 Non-crop 65,786 61,967 Total net sales $ 468,186 $ 454,272 Net sales: U.S. $ 282,225 $ 300,314 International 185,961 153,958 Total net sales $ 468,186 $ 454,272 Timing of revenue recognition: Goods and services transferred at a point in time $ 464,967 $ 453,449 Goods and services transferred over time 3,219 823 Total net sales $ 468,186 $ 454,272 Performance Obligations A performance obligation is a promise in a contract or sales order to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s sales orders have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the sales orders. For sales orders with multiple performance obligations, the Company allocates the sales order’s transaction price to each performance obligation based on its relative stand-alone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. The Company’s performance obligations are satisfied either at a point in time or over time as work progresses. At December 31, 2019, the Company had $6,826 of remaining performance obligations, which are comprised of deferred revenue and services not yet delivered. The Company expects to recognize all these remaining performance obligations as revenue in fiscal 2020. Contract Balances The timing of revenue recognition, billings and cash collections may result in deferred revenue in the consolidated balance sheets. The Company sometimes receives payments from its customers in advance of goods and services being provided in return for early cash incentive programs, resulting in deferred revenues. These liabilities are reported on the consolidated balance sheets at the end of each reporting period. The contract assets in the table below are related to royalties earned on certain licenses granted for the use of the Company’s intellectual property, which are reflected in other receivables in the consolidated balance sheets and recognized at a point in time and remain outstanding as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Contract assets $ 6,091 $ 3,750 Deferred revenue $ 6,826 $ 20,043 Revenue recognized for the year ended December 31, 2019, that was included in the deferred revenue balance at the beginning of 2019 was $20,043. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts— 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 — The Company offers various discounts to customers based on the volume purchased within a defined time period, other pricing adjustments, some grower volume incentives or other key performance indicator driven payments made to distributors, retailers or growers, usually at the end of a growing season. The Company describes these payments as “Programs.” Programs are a critical part of doing business in both the US crop and non-crop chemicals marketplaces. These discount Programs represent variable consideration. In accordance with ASC 606, revenues from sales are recorded at the net sales price, which is the transaction price net of the impact of Programs and includes estimates of variable consideration. Variable consideration includes amounts expected to be paid to its customers estimated using the expected value method. Each quarter management compares individual sale transactions with Programs to determine what, if any, estimated program liabilities have 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, for volume driven payments, make assessments of whether or not customers are tracking in a manner that indicates that they will meet the requirements set out in agreed upon terms and conditions attached to each Program. Following this assessment, management will make adjustments 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, or close to, the end of the crop season, at which time customer performance can be more 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. The Company accrued program costs of $47,699 at December 31, 2019, as compared to $37,349 at December 31, 2018 |
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 average effective interest rate. Expenditures for minor repairs and maintenance are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and the gain or loss realized on disposition is reflected in operations. All plant and equipment are depreciated using the straight-line method, utilizing the estimated useful property lives. See note 1 for useful lives |
Intangible Assets | Intangible Assets — The primary identifiable intangible assets of the Company relate to assets associated with its product and business acquisitions. All of the Company’s intangible assets have finite lives and are 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. |
Business Combinations | Business Combinations — The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statement of operations. In the event that the Company acquires an entity in which the Company previously held a non-controlling investment, the difference between the fair value and carrying value of the investment as of the date of the acquisition is recorded as a gain or loss and recorded within net income (loss) on equity method investments in the consolidated statement of operations. Certain of our acquisition agreements include contingent earn-out arrangements, which are generally based on the achievement of future income thresholds. The fair values of these earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates. For each transaction, the Company estimate the fair value of contingent earn-out payments as part of the initial purchase price and record the estimated fair value of contingent consideration as a liability on the consolidated balance sheets. We review and re-assess the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could be materially different from the initial estimates or prior quarterly amounts. Changes in the estimated fair value of our contingent earn-out liabilities are reported in operating results. |
Asset Acquisitions | Asset Acquisitions — If an acquisition of an asset or group of assets does not meet the definition of a business, the transaction is accounted for as an asset acquisition rather than a business combination. An asset acquisition does not result in the recognition of goodwill and transaction costs are capitalized as part of the cost of the asset or group of assets acquired. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The acquisitions costs are allocated to the assets acquired on a relative fair value basis. |
Impairment | Impairment — The carrying values of long-lived assets other than goodwill are reviewed for impairment annually 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 would indicate any impairment of the carrying value of these long-lived assets and no material impairment losses were recorded in 2019 or 2018. The Company reviews goodwill for impairment utilizing either a qualitative or quantitative assessment. If the Company decides that it is appropriate to perform a qualitative assessment and concludes that the fair value of a reporting unit more likely than not exceeds its carrying value, no further evaluation is necessary. If the Company performs a quantitative assessment, the Company compares the fair value of a reporting unit with its carrying amounts and recognizes an impairment charge for the amount that the carrying amount exceeds the reporting unit’s fair value. The Company annually tests goodwill for impairment in beginning of the fourth quarter, or earlier if triggering events occur. The Company did not record any impairment losses in 2019 or 2018. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments— The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, 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 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, short-term investments, accounts receivable, long-term investments, accounts payable and accrued expenses approximates fair value because of the relatively short maturity of such instruments. The carrying amount of the Company’s short-term and long-term borrowings, which are considered Level 2 liabilities, approximates fair value based upon current rates and terms available to the Company for similar debt. We measure our contingent earn-out liabilities in connection with acquisitions at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. We may use various valuation techniques depending on the terms and conditions of the contingent consideration including a Monte-Carlo simulation. This simulation uses probability distribution for each significant input to produce hundreds or thousands of possible outcomes and the results are analyzed to determine probabilities of different outcomes occurring. Refer to Note 9 for a reconciliation of the Company’s deferred consideration. |
Foreign Currency Translation | Foreign Currency Translation— Certain international operations use the respective local currencies as their functional currency, while other international operations use the U.S. Dollar as their functional currency. The Company considers the U.S. dollar as its reporting currency. Translation adjustments for subsidiaries where the functional currency is its local currency are included in other comprehensive income (loss). Foreign currency transaction gains (losses) resulting from exchange rate fluctuation on transactions denominated in a currency other than the functional currency are reported in earnings. Assets and liabilities of the foreign operations denominated in local currencies are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the weighted average rate of exchange during the period. Translations of intercompany loans of a long-term investment nature are included as a component of translation adjustment in other comprehensive income (loss). |
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 consolidated financial statements. At December 31, 2019 and 2018, the Company recorded unrecognized tax benefits of $4,597 and $2,170, respectively. |
Per Share Information | Per Share Information— ASC 260 requires dual presentation of basic earnings per share (“EPS”) and diluted EPS on the face of all consolidated statements of operations. 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: 2019 2018 2017 Numerator: Net income attributable to American Vanguard $ 13,601 $ 24,195 $ 20,274 Denominator: Weighted average shares outstanding—basic 29,030 29,326 29,100 Dilutive effect of stock options and grants 626 722 603 Weighted average shares outstanding—diluted 29,656 30,048 29,703 For the years ended December 31, 2019, 2018, and 2017, no options or grants were excluded from the computation. |
Use of Estimates | Use of Estimates— The preparation of consolidated 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 (including those related to litigation), and revenues, at the date that the consolidated financial statements are prepared. Significant estimates relate to the allowance for doubtful accounts, inventory reserves, impairment of long-lived assets, assets acquired and liabilities assumed in connections with business combinations and asset acquisitions, accrued program costs, and stock based compensation and income taxes. Actual results could materially differ from those estimates. |
Total Comprehensive Income (Loss) | Total comprehensive income (loss)— In addition to net income, total comprehensive income (loss) 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, 2019, 2018, and 2017 total comprehensive income (loss) consisted of net income attributable to AVD and foreign currency translation adjustments. |
Stock-Based Compensation | Stock-Based Compensation— The Company accounts for stock-based awards to employees and directors pursuant to ASC 718. 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 Statements 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 estimated forfeitures pursuant to ASC 718. Estimated forfeitures recognized in the Company’s consolidated statements of operations reduced compensation expense by $191, $358, and $177 for the years ended December 31, 2019, 2018, and 2017, respectively. The Company estimates that 17.8% of all restricted stock grants and 17.8% of the performance-based restricted shares that are currently subject to vesting will be forfeited. These estimates are reviewed quarterly and revised as necessary. The below tables illustrate the Company’s stock based compensation, unamortized stock-based compensation, and remaining weighted average period for the years ended December 31, 2019, 2018 and 2017. 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. Stock-Based Compensation Unamortized Stock-Based Compensation Remaining Weighted Average Period (years) December 31, 2019 Restricted Stock $ 3,655 $ 5,512 1.9 Unrestricted Stock 411 205 0.4 Performance-Based Restricted Stock 3,094 2,835 1.9 Total $ 7,160 $ 8,552 December 31, 2018 Restricted Stock $ 3,272 $ 5,006 1.3 Unrestricted Stock 385 160 0.4 Performance-Based Restricted Stock 2,148 2,565 1.9 Total $ 5,805 $ 7,731 December 31, 2017 Incentive Stock Options $ 345 $ — — Performance-Based Options 416 — — Restricted Stock 2,355 3,628 1.0 Unrestricted Stock 350 160 0.4 Performance-Based Restricted Stock 1,248 1,642 1.8 Total $ 4,714 $ 5,430 The Company uses the Black-Scholes option-pricing model (“Black-Scholes model”) to value option grants using the following weighted average assumptions (i.e. risk-free interest rate, dividend yield, volatility and average lives). There were no stock options granted during 2019, 2018 or 2017. The expected volatility and expected life assumptions are 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 2019, 2018, and 2017 were $16.84, $20.21, and $16.24, respectively. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance: Accounting standards adopted in 2019: In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 and subsequent amendments, collectively known as ASC 842, Leases. ASC 842 requires recognition of operating leases as lease assets and liabilities on the balance sheet and requires the disclosure of key information about leasing arrangements. The Company elected to adopt ASC 842 by applying the modified transition method and, in addition, elected to use the effective date of January 1, 2019 as the initial date of application. We elected to apply all relevant practical expedients permitted under the transition guidance within the new lease standard with the exception of the practical expedient allowing the use of hindsight in determining the lease term and in assessing impairment. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected an accounting policy to keep leases with an initial term of 12 months or less off the balance sheet and to recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We also elected the practical expedient to not separate lease and non-lease components for all our leases, except for warehouse leases. The adoption of ASC 842 resulted in the recognition of operating lease ROU assets of $12,936 and operating lease liabilities of $12,936 on the effective date as of January 1, 2019. The new guidance did not have a material impact on the consolidated statement of operations or consolidated statement of cash flows. The accounting for finance leases under ASC 842 remained substantially unchanged from previous accounting guidance and are not material. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (ASC 350). Accounting standards not yet adopted: In June 2016, the FASB issued ASU 2016-13 " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU no. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, The Company is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the |
Description of Business, Basi_3
Description of Business, Basis of Consolidation, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Business Sales Segmentation | Selective enterprise information is as follows: 2019 2018 2017 Net sales: Insecticides $ 153,448 $ 150,595 $ 134,377 Herbicides/soil fumigants/fungicides 181,686 183,350 124,529 Other, including plant growth regulators 67,266 58,360 42,503 Total crop 402,400 392,305 301,409 Non-crop 65,786 61,967 53,638 $ 468,186 $ 454,272 $ 355,047 Gross profit: Crop $ 140,806 $ 150,986 $ 117,892 Non-crop 36,548 31,645 29,500 $ 177,354 $ 182,631 $ 147,392 |
Summary of Operating Expense | Operating expenses include cost centers for Selling, General and Administrative, Research, Product Development, and Regulatory, and Freight, Delivery and Warehousing. 2019 2018 2017 Selling $ 45,121 $ 39,585 $ 29,112 General and administrative 46,593 42,981 37,660 Research, product development and regulatory 24,070 26,428 26,076 Freight, delivery and warehousing 35,349 34,616 27,750 $ 151,133 $ 143,610 $ 120,598 |
Components of Inventories, Net of Reserve Allowance | The components of inventories, net of reserve allowance, consist of the following: 2019 2018 Finished products $ 151,917 $ 147,297 Raw materials 11,396 12,598 $ 163,313 $ 159,895 |
Schedule of Additional Information of Operating Leases | Additional information related to operating leases are as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 5,398 ROU assets obtained in exchange for new liabilities $ 3,580 |
Schedule of Weighted-Average Remaining Lease Term and Discount Rate Related to Operating Leases | The weighted-average remaining lease term and discount rate related to the operating leases as of December 31, 2019 were as follows: Weighted-average remaining lease term (in years) 3.18 Weighted-average discount rate 3.68 % |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases | Future minimum lease payments under non-cancellable operating leases as of December 31, 2019 were as follows: December 31, 2019 2020 $ 5,200 2021 3,367 2022 1,754 2023 723 2024 322 Thereafter 794 Total lease payments $ 12,160 Less: imputed interest 753 Total $ 11,407 Amounts recognized in the consolidated balance sheet: Operating lease liabilities, current $ 4,904 Operating lease liabilities, long term $ 6,503 |
Summary of Selective Enterprise Information of Sales Disaggregated By Category and Geographic Region | Selective enterprise information of sales disaggregated by category and geographic region is as follows: Year Ended December 31, 2019 2018 Net sales: Crop: Insecticides $ 153,448 $ 150,595 Herbicides/soil fumigants/fungicides 181,686 183,350 Other, including plant growth regulators 67,266 58,360 Total crop 402,400 392,305 Non-crop 65,786 61,967 Total net sales $ 468,186 $ 454,272 Net sales: U.S. $ 282,225 $ 300,314 International 185,961 153,958 Total net sales $ 468,186 $ 454,272 Timing of revenue recognition: Goods and services transferred at a point in time $ 464,967 $ 453,449 Goods and services transferred over time 3,219 823 Total net sales $ 468,186 $ 454,272 |
Summary of Contract Balances | The contract assets in the table below are related to royalties earned on certain licenses granted for the use of the Company’s intellectual property, which are reflected in other receivables in the consolidated balance sheets and recognized at a point in time and remain outstanding as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Contract assets $ 6,091 $ 3,750 Deferred revenue $ 6,826 $ 20,043 |
Components of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share were as follows: 2019 2018 2017 Numerator: Net income attributable to American Vanguard $ 13,601 $ 24,195 $ 20,274 Denominator: Weighted average shares outstanding—basic 29,030 29,326 29,100 Dilutive effect of stock options and grants 626 722 603 Weighted average shares outstanding—diluted 29,656 30,048 29,703 |
Stock Based Compensation, Unamortized Stock-Based Compensation and Remaining Weighted Average Period | The below tables illustrate the Company’s stock based compensation, unamortized stock-based compensation, and remaining weighted average period for the years ended December 31, 2019, 2018 and 2017. 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. Stock-Based Compensation Unamortized Stock-Based Compensation Remaining Weighted Average Period (years) December 31, 2019 Restricted Stock $ 3,655 $ 5,512 1.9 Unrestricted Stock 411 205 0.4 Performance-Based Restricted Stock 3,094 2,835 1.9 Total $ 7,160 $ 8,552 December 31, 2018 Restricted Stock $ 3,272 $ 5,006 1.3 Unrestricted Stock 385 160 0.4 Performance-Based Restricted Stock 2,148 2,565 1.9 Total $ 5,805 $ 7,731 December 31, 2017 Incentive Stock Options $ 345 $ — — Performance-Based Options 416 — — Restricted Stock 2,355 3,628 1.0 Unrestricted Stock 350 160 0.4 Performance-Based Restricted Stock 1,248 1,642 1.8 Total $ 4,714 $ 5,430 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment at December 31, 2019 and 2018 consist of the following: 2019 2018 Estimated useful lives Land $ 2,706 $ 2,548 Buildings and improvements 18,640 17,555 10 to 3 0 Machinery and equipment 116,757 109,064 3 to 15 years Office furniture, fixtures and equipment 6,228 5,655 3 to 10 years Automotive equipment 1,762 1,116 3 to 6 years Construction in progress 5,263 2,513 Total gross value 151,356 138,451 Less accumulated depreciation (94,835 ) (89,199 ) Total net value $ 56,521 $ 49,252 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt | Long-term debt of the Company at December 31, 2019 and 2018 is summarized as follows: 2019 2018 Revolving line of credit $ 149,300 $ 97,400 Less debt issuance costs (534 ) (729 ) $ 148,766 $ 96,671 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provisions for Income Taxes | The provisions for income taxes are: 2019 2018 2017 Current: Federal $ (235 ) $ 5,641 $ 2,124 State (151 ) 1,777 1,347 Foreign 2,956 2,121 570 Deferred: Federal 2,867 650 160 State 1,548 (365 ) 242 Foreign (1,783 ) (679 ) — $ 5,202 $ 9,145 $ 4,443 |
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 21.0% in 2019 and 2018 and 35% in 2017 to income before income tax expense, as a result of the following: 2019 2018 2017 Computed tax expense at statutory federal rates $ 3,993 $ 7,054 $ 8,651 Increase (decrease) in taxes resulting from: State taxes, net of federal income tax benefit 1,131 1,627 988 Domestic production deduction — — (150 ) Impact of the enactment of the Tax Cuts and Jobs Act (net) — 1,089 (3,433 ) Income tax credits (819 ) (689 ) (431 ) Foreign tax rate differential 341 (37 ) (1,503 ) Subpart F income — 14 3 (Gain) loss on equity investments — (61 ) 62 Stock based compensation 366 277 262 Global intangible low-taxed income 249 — — Other (59 ) (129 ) (6 ) $ 5,202 $ 9,145 $ 4,443 |
Components of Income before Provision | Income before provision for income taxes and losses on equity investments are: 2019 2018 2017 Domestic $ 15,465 $ 26,124 $ 18,931 Foreign 3,547 7,472 5,922 $ 19,012 $ 33,596 $ 24,853 |
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, 2019 and 2018 relate to the following: 2019 2018 Deferred tax asset Inventories $ 2,912 $ 3,299 State income taxes 328 53 Program accrual 7,529 7,088 Vacation pay accrual 756 685 Accrued bonuses 599 1,246 Bad debt expense 627 294 Stock compensation 2,755 1,723 NOL carryforward 1,141 580 Tax credits 824 779 Lease liability 3,308 — Other 209 266 Deferred tax asset $ 20,988 $ 16,013 Deferred tax liability Plant and equipment, principally due to differences in depreciation and capitalized interest $ 35,545 $ 30,269 Lease asset 3,265 — Prepaid expenses 1,323 1,107 Deferred tax liability $ 40,133 $ 31,376 Total net deferred tax liability $ 19,145 $ 15,363 |
Gross Unrecognized Tax Benefits | The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2019 and 2018: 2019 2018 Balance at beginning of year $ 2,170 $ 2,118 Additions for tax positions related to the current year 155 128 Additions for tax positions related to the prior years 27 24 Additions for tax positions related to acquired businesses 2,458 — Reduction for tax positions related to the prior years (213 ) (100 ) Balance at end of year $ 4,597 $ 2,170 |
Major Customers and Internati_2
Major Customers and International Sales (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of International Sales | International sales for 2019, 2018 and 2017 were as follows: 2019 2018 2017 South and Central America $ 111,106 $ 86,172 $ 25,748 Mexico 28,835 24,578 16,030 Asia 15,554 14,828 28,880 Canada 11,637 3,403 4,083 Europe 6,889 11,059 10,700 Africa 6,750 8,027 7,893 Australia 2,798 2,635 4,334 Middle East 2,392 3,256 1,237 $ 185,961 $ 153,958 $ 98,905 |
Product and Business Acquisit_2
Product and Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Pro Forma Financial Information | The following unaudited pro forma information presents a summary of the Company’s combined results of operations for the year ended December 31, 2017, as if the 2017 business acquisitions had occurred on January 1, 2017. The following pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transaction been effected on the assumed date, nor is it necessarily an indication of trends in future results for a number of reasons. Consequently, actual results will differ from the unaudited pro forma financial information. Year ended December 31, 2017 Pro forma net sales $ 458,793 Pro forma net income 24,540 Pro forma earnings per common share – basic 0.84 Pro forma earnings per common share – assuming dilution 0.83 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
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, 2016 $ 121,433 Additions during fiscal 2017 68,327 Impact of movement in exchange rates (6 ) Amortization expense (8,804 ) Intangible assets at December 31, 2017 180,950 Additions during fiscal 2018 16,429 Impact of movement in exchange rates (45 ) Amortization expense (10,751 ) Intangible assets at December 31, 2018 186,583 Additions during fiscal 2019 25,368 Write offs (264 ) Impact of movement in exchange rates (1,158 ) Amortization expense (12,152 ) Intangible assets at December 31, 2019 $ 198,377 Goodwill at December 31, 2018 $ 25,790 Net additions during fiscal 2019 22,652 Impact of movement in exchange rates (1,885 ) Goodwill at December 31, 2019 $ 46,557 Intangible assets and goodwill at December 31, 2019 $ 244,934 |
Schedule of Gross Carrying Amount and Accumulated Amortization of Intangible Assets and Goodwill | The following schedule represents the gross carrying amount and accumulated amortization of intangible assets and goodwill. Product rights and trademarks are amortized over their expected useful lives of 25 years. Customer lists are amortized over their expected useful lives of nine to ten years. 2019 2018 Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Product Rights $ 252,786 $ 89,204 $ 163,582 $ 235,684 $ 79,627 $ 156,057 Trademarks 32,795 6,633 26,162 30,483 5,337 25,146 Customer Lists 12,028 3,395 8,633 7,529 2,149 5,380 Total intangibles assets 297,609 99,232 198,377 273,696 87,113 186,583 Goodwill 46,557 — 46,557 25,790 — 25,790 Total intangibles and goodwill $ 344,166 $ 99,232 $ 244,934 $ 299,486 $ 87,113 $ 212,373 |
Schedule of Future Amortization Charges Related to Intangible Assets | The following schedule represents future amortization charges related to intangible assets: Year ending December 31, Amount 2020 $ 12,768 2021 12,619 2022 12,498 2023 11,988 2024 11,690 Thereafter 136,814 $ 198,377 |
Schedule of Company's Deferred Consideration Liability Under Acquisitions Agreements | The following schedule represents the Company’s deferred consideration liability under acquisitions agreements: Amount Obligations under acquisition agreements at December 31, 2016 $ 592 Additional obligations acquired 10,659 Accretion of discounted liabilities 109 Payments on existing obligations (26 ) Obligations under acquisition agreements at December 31, 2017 11,334 Adjustment to deferred consideration within the measurement period (1,697 ) Reassessment of deferred consideration (6,050 ) Accretion of discounted liabilities 345 Payments on existing obligations (66 ) Obligations under acquisition agreements at December 31, 2018 3,866 Additional obligations acquired 3,051 Reassessment of deferred consideration (4,120 ) Accretion of discounted liabilities 72 Payments on existing obligations (850 ) Foreign exchange effect (229 ) Obligations under acquisition agreements at December 31, 2019 $ 1,790 |
Equity Plan Awards (Tables)
Equity Plan Awards (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Option Activity | Option activity within each plan is as follows: Incentive Stock Option Plans Weighted Average Price Per Share Exercisable Weighted Average Price Per Share Balance outstanding, December 31, 2016 541,905 $ 9.33 $ 7.97 Options exercised (55,979 ) $ 8.37 Options forfeited (13,143 ) 11.49 Balance outstanding, December 31, 2017 472,783 $ 9.38 $ 9.38 Options exercised (88,719 ) 10.62 Balance outstanding, December 31, 2018 384,064 $ 9.10 $ 9.10 Options exercised (51,241 ) 8.87 Balance outstanding, December 31, 2019 332,823 $ 9.14 $ 9.14 |
Summary of Stock Options Summarized by Exercise Price | Information relating to stock options at December 31, 2019 summarized by exercise price is as follows: Outstanding Weighted Average Exercisable Weighted Average Exercise Price Per Share Shares Remaining Life (Months) Exercise Price Shares Exercise Price Incentive Stock Option Plan: $7.50 195,850 11 $ 7.50 195,850 $ 7.50 $11.32-$14.75 136,973 58 $ 11.48 136,973 $ 11.48 332,823 30 $ 9.14 332,823 $ 9.14 |
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, 2019 and 2018 was as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Months) Intrinsic Value (thousands) As of December 31, 2019: Incentive Stock Option Plans: Outstanding 332,823 $ 9.14 30 $ 3,439 Vested 332,823 $ 9.14 30 $ 3,439 Exercisable 332,823 $ 9.14 30 $ 3,439 As of December 31, 2018: Incentive Stock Option Plans: Outstanding 384,064 $ 9.10 42 $ 2,338 Vested 384,064 $ 9.10 42 $ 2,338 Exercisable 384,064 $ 9.10 42 $ 2,338 |
Performance Based Stock Options | |
Summary of Option Activity | Performance option activity is as follows: Incentive Stock Option Plans Weighted Average Price Per Share Exercisable Weighted Average Price Per Share Balance outstanding, December 31, 2017 81,666 $ 11.49 $ 11.49 Additional vesting based on performance 77,598 11.49 11.49 Options exercised (18,853 ) 11.49 11.49 Balance outstanding, December 31, 2018 140,411 $ 11.49 $ 11.49 Options exercised (19,629 ) 11.49 11.49 Balance outstanding, December 31, 2019 120,782 $ 11.49 $ 11.49 |
Performance Incentive Stock Option Plan | |
Summary of Stock Options Summarized by Exercise Price | Information relating to performance stock options at December 31, 2019 is summarized by exercise price is as follows: Outstanding Weighted Average Exercisable Weighted Exercise Price Per Share Shares Remaining Life (Months) Exercise Price Shares Exercise Price Performance Incentive Stock Option Plan: 120,782 60 $ 11.49 120,782 $ 11.49 |
Weighted Average Exercise Prices for Options Granted and Exercisable and Weighted Average Remaining Contractual Life for Options Outstanding | The weighted average exercise price for performance options granted and exercisable and the weighted average remaining contractual life for performance options outstanding as of December 31, 2019 and 2018 was as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Months) Intrinsic Value (thousands) As of December 31, 2019: Performance Incentive Stock Option Plans: Outstanding 120,782 $ 11.49 60 $ 964 Vested 120,782 $ 11.49 60 $ 964 Exercisable 120,782 $ 11.49 60 $ 964 As of December 31, 2018: Performance Incentive Stock Option Plans: Outstanding 140,411 $ 11.49 72 $ 520 Vested 140,411 $ 11.49 72 $ 520 Exercisable 140,411 $ 11.49 72 $ 520 |
Common Stock Grants | |
Summary of Non-Vested Shares | A status summary of non-vested shares as of December 31, 2019 and 2018, are presented below: December 31, 2019 December 31, 2018 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested shares at January 1 st 587,210 $ 17.59 391,753 $ 15.61 Granted 341,653 16.84 282,030 20.21 Vested (148,240 ) 14.99 (53,304 ) 17.06 Forfeited (60,778 ) 18.12 (33,269 ) 17.29 Nonvested shares at December 31 st 719,845 $ 17.67 587,210 $ 17.59 |
Performance Based Restricted Shares | |
Summary of Non-Vested Shares | A summary of non-vested shares as of December 31, 2019 and 2018, is presented below: December 31, 2019 December 31, 2018 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested shares at January 1 st 287,077 $ 16.87 186,057 $ 14.93 Granted 137,557 16.96 130,332 18.74 Additional granted based on performance achievement 42,368 12.97 — — Vested (92,572 ) 14.78 (22,857 ) 11.90 Forfeited (28,998 ) 17.70 (6,455 ) 16.22 Nonvested shares at December 31 st 345,432 $ 16.92 287,077 $ 16.87 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Beginning Balance, Annual Activity and Ending Balance of Foreign Currency Translation Adjustment Included as Component of Accumulated Other Comprehensive Loss | The following table lists the beginning balance, annual activity and ending balance of foreign currency translation adjustment included as a component of accumulated other comprehensive loss: Balance, December 31, 2016 $ (4,851 ) Foreign currency translation adjustment 344 Balance, December 31, 2017 (4,507 ) Foreign currency translation adjustment — Balance, December 31, 2018 (4,507 ) Foreign currency translation adjustment (1,191 ) Balance, December 31, 2019 $ (5,698 ) |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Number of Shares of Common Stock Repurchased | The table below summarizes the number of shares of our common stock that were repurchased during the years ended December 31, 2019 and 2018. Month ended Total number of shares purchased Average price paid per share Total amount paid January 31, 2019 158,048 $ 16.48 $ 2,604 Total number of shares repurchased 158,048 $ 16.48 $ 2,604 November 30, 2018 196,858 $ 17.10 $ 3,366 December 31, 2018 255,500 15.35 3,921 Total number of shares repurchased 452,358 $ 16.11 $ 7,287 |
Quarterly Data-Unaudited (Table
Quarterly Data-Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Unaudited Statement of Operations Information | The following tables contain selected unaudited statement of operations information for each quarter of 2019 and 2018. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. March 31 June 30 September 30 December 31 Quarterly Data—2019 Net sales $ 99,676 $ 113,104 $ 124,884 $ 130,521 Gross profit 41,702 41,653 47,463 46,536 Net income attributable to American Vanguard 3,906 3,106 3,153 3,436 Basic net income per share 0.13 0.11 0.11 0.12 Diluted net income per share 0.13 0.11 0.11 0.12 Quarterly Data—2018 Net sales $ 104,108 $ 107,046 $ 111,780 $ 131,338 Gross profit 41,051 43,297 45,300 52,983 Net income attributable to American Vanguard 4,655 5,599 6,525 7,416 Basic net income per share 0.16 0.19 0.22 0.25 Diluted net income per share 0.16 0.19 0.22 0.25 Note: Totals may not agree with full year amounts due to rounding and separate calculations each quarter. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1,263 | $ 46 | $ 42 |
Additions Charged to Costs and Expenses | 1,035 | 1,217 | 31 |
Deductions | (27) | ||
Foreign exchange impact | 2 | ||
Balance at End of Period | 2,300 | 1,263 | 46 |
Inventory Reserve | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,989 | 3,137 | 3,594 |
Additions Charged to Costs and Expenses | 573 | 476 | |
Deductions | (432) | (1,624) | (457) |
Balance at End of Period | $ 2,130 | $ 1,989 | $ 3,137 |
Description of Business, Basi_4
Description of Business, Basis of Consolidation, Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)Category$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Jan. 01, 2019USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reportable business category | Category | 1 | |||
Advertising expense | $ 5,520,000 | $ 4,865,000 | $ 3,020,000 | |
Inventory reserve allowance | 2,130,000 | 1,989,000 | ||
Operating lease expenses | 5,547,000 | |||
Remaining performance obligations | 6,826,000 | |||
Revenue recognized | 20,043,000 | |||
Accrued program costs | 47,699,000 | 37,349,000 | ||
Impairment loss of long-lived assets | 0 | 0 | ||
Goodwill, impairment losses | 0 | 0 | ||
Unrecognized tax benefits | $ 4,597,000 | $ 2,170,000 | $ 2,118,000 | |
Stock options or grants excluded from computation of diluted earning per share | shares | 0 | 0 | 0 | |
Reduction in share based compensation expense | $ 191,000 | $ 358,000 | $ 177,000 | |
Operating lease, ROU assets | 11,258,000 | $ 12,936,000 | ||
Operating lease, liability | $ 11,407,000 | $ 12,936,000 | ||
Restricted Stock | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Forfeited percentage of stock | 17.80% | |||
Weighted average grant-date fair values of restricted stock grants | $ / shares | $ 16.84 | $ 20.21 | $ 16.24 | |
Performance Based Restricted Shares | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Forfeited percentage of stock | 17.80% | |||
Weighted average grant-date fair values of restricted stock grants | $ / shares | $ 16.96 | $ 18.74 | $ 15.43 | |
Incentive Stock Options | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Stock options granted | shares | 0 | 0 | 0 | |
Minimum | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease term | 1 year | |||
Maximum | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease term | 20 years |
Summary of Business Sales by Pr
Summary of Business Sales by Product and Geographic Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | |||||||||||
Net sales | $ 130,521 | $ 124,884 | $ 113,104 | $ 99,676 | $ 131,338 | $ 111,780 | $ 107,046 | $ 104,108 | $ 468,186 | $ 454,272 | $ 355,047 |
Gross profit | $ 46,536 | $ 47,463 | $ 41,653 | $ 41,702 | $ 52,983 | $ 45,300 | $ 43,297 | $ 41,051 | 177,354 | 182,631 | 147,392 |
Crop | |||||||||||
Net sales | |||||||||||
Gross profit | 140,806 | 150,986 | 117,892 | ||||||||
Non-crop | |||||||||||
Net sales | |||||||||||
Gross profit | 36,548 | 31,645 | 29,500 | ||||||||
Insecticides | |||||||||||
Net sales | |||||||||||
Net sales | 153,448 | 150,595 | 134,377 | ||||||||
Herbicides/Soil Fumigants/Fungicides | |||||||||||
Net sales | |||||||||||
Net sales | 181,686 | 183,350 | 124,529 | ||||||||
Other, Including Plant Growth Regulators | |||||||||||
Net sales | |||||||||||
Net sales | 67,266 | 58,360 | 42,503 | ||||||||
Crop | |||||||||||
Net sales | |||||||||||
Net sales | 402,400 | 392,305 | 301,409 | ||||||||
Non-Crop | |||||||||||
Net sales | |||||||||||
Net sales | $ 65,786 | $ 61,967 | $ 53,638 |
Summary of Operating Expense (D
Summary of Operating Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | |||
Selling | $ 45,121 | $ 39,585 | $ 29,112 |
General and administrative | 46,593 | 42,981 | 37,660 |
Research, product development and regulatory | 24,070 | 26,428 | 26,076 |
Freight, delivery and warehousing | 35,349 | 34,616 | 27,750 |
Operating expenses | $ 151,133 | $ 143,610 | $ 120,598 |
Components of Inventories, Net
Components of Inventories, Net of Reserve Allowance (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 151,917 | $ 147,297 |
Raw materials | 11,396 | 12,598 |
Total Inventories | $ 163,313 | $ 159,895 |
Schedule of Additional Informat
Schedule of Additional Information of Operating Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 5,398 |
ROU assets obtained in exchange for new liabilities | $ 3,580 |
Schedule of Weighted-Average Re
Schedule of Weighted-Average Remaining Lease Term and Discount Rate Related to Operating Leases (Detail) | Dec. 31, 2019 |
Accounting Policies [Abstract] | |
Weighted-average remaining lease term (in years) | 3 years 2 months 4 days |
Weighted-average discount rate | 3.68% |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Accounting Policies [Abstract] | ||
2020 | $ 5,200 | |
2021 | 3,367 | |
2022 | 1,754 | |
2023 | 723 | |
2024 | 322 | |
Thereafter | 794 | |
Total lease payments | 12,160 | |
Less: imputed interest | 753 | |
Total | 11,407 | $ 12,936 |
Amounts recognized in the consolidated balance sheet: | ||
Operating lease liabilities, current | 4,904 | |
Operating lease liabilities, long term | 6,503 | |
Total | $ 11,407 | $ 12,936 |
Summary of Selective Enterprise
Summary of Selective Enterprise Information of Sales Disaggregated By Category and Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 130,521 | $ 124,884 | $ 113,104 | $ 99,676 | $ 131,338 | $ 111,780 | $ 107,046 | $ 104,108 | $ 468,186 | $ 454,272 | $ 355,047 |
Insecticides | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 153,448 | 150,595 | 134,377 | ||||||||
Herbicides/Soil Fumigants/Fungicides | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 181,686 | 183,350 | 124,529 | ||||||||
Other, Including Plant Growth Regulators | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 67,266 | 58,360 | 42,503 | ||||||||
Crop | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 402,400 | 392,305 | 301,409 | ||||||||
Non-Crop | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 65,786 | 61,967 | 53,638 | ||||||||
U.S. | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 282,225 | 300,314 | |||||||||
International | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 185,961 | 153,958 | $ 98,905 | ||||||||
Goods and Services Transferred at a Point in Time | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 464,967 | 453,449 | |||||||||
Goods and Services Transferred Over Time | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 3,219 | $ 823 |
Summary of Contract Balances (D
Summary of Contract Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Contract With Customer Asset And Liability [Abstract] | ||
Contract assets | $ 6,091 | $ 3,750 |
Deferred revenue | $ 6,826 | $ 20,043 |
Components of Basic and Diluted
Components of Basic and Diluted Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income attributable to American Vanguard | $ 3,436 | $ 3,153 | $ 3,106 | $ 3,906 | $ 7,416 | $ 6,525 | $ 5,599 | $ 4,655 | $ 13,601 | $ 24,195 | $ 20,274 |
Denominator: | |||||||||||
Weighted average shares outstanding—basic | 29,030 | 29,326 | 29,100 | ||||||||
Dilutive effect of stock options and grants | 626 | 722 | 603 | ||||||||
Weighted average shares outstanding—diluted | 29,656 | 30,048 | 29,703 |
Unamortized Stock-Based Compens
Unamortized Stock-Based Compensation Expenses (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation | $ 7,160,000 | $ 5,805,000 | $ 4,714,000 |
Unamortized Stock-Based Compensation | 8,552,000 | 7,731,000 | 5,430,000 |
Incentive Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation | 0 | 0 | 345,000 |
Performance Based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation | 416,000 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation | $ 3,655,000 | $ 3,272,000 | $ 2,355,000 |
Remaining Weighted Average Period (years) | 1 year 10 months 24 days | 1 year 3 months 18 days | 1 year |
Unamortized Stock-Based Compensation | $ 5,512,000 | $ 5,006,000 | $ 3,628,000 |
Unrestricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation | $ 411,000 | $ 385,000 | $ 350,000 |
Remaining Weighted Average Period (years) | 4 months 24 days | 4 months 24 days | 4 months 24 days |
Unamortized Stock-Based Compensation | $ 205,000 | $ 160,000 | $ 160,000 |
Performance Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation | $ 3,094,000 | $ 2,148,000 | $ 1,248,000 |
Remaining Weighted Average Period (years) | 1 year 10 months 24 days | 1 year 9 months 18 days | 1 year 8 months 12 days |
Unamortized Stock-Based Compensation | $ 2,835,000 | $ 2,565,000 | $ 1,642,000 |
Summary of Property, Plant and
Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total gross value | $ 151,356 | $ 138,451 |
Less accumulated depreciation | (94,835) | (89,199) |
Total net value | 56,521 | 49,252 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total gross value | 2,706 | 2,548 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total gross value | $ 18,640 | 17,555 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 10 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 30 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total gross value | $ 116,757 | 109,064 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 15 years | |
Office furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total gross value | $ 6,228 | 5,655 |
Office furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 3 years | |
Office furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 10 years | |
Automotive equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total gross value | $ 1,762 | 1,116 |
Automotive equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 3 years | |
Automotive equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment estimated useful life | 6 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total gross value | $ 5,263 | $ 2,513 |
Property, Plant And Equipment -
Property, Plant And Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense related to property, plant and equipment | $ 6,504 | $ 8,142 | $ 8,154 |
Elimination of Assets and Accumulated depreciation | $ 868 | $ 4,057 | $ 6,317 |
Summary of Long Term Debt (Deta
Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Revolving line of credit | $ 149,300 | $ 97,400 |
Less debt issuance costs | (534) | (729) |
Long term debt, non current | $ 148,766 | $ 96,671 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Principal payments on long -term debt due in 2022 | $ 149,300,000 | ||
Senior Secured Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Available borrowings capacity under credit agreement | $ 112,150,000 | ||
Senior secured credit facility, maturity date | Jun. 30, 2022 | ||
Credit agreement, covenant description | The Credit Agreement is a senior secured lending facility, consisting of a line of credit of up to $250,000, an accordion feature of up to $100,000 and a maturity date of June 30, 2022. The Credit Agreement contains two key financial covenants; namely, borrowers are required to maintain a Consolidated Funded Debt Ratio of no more than 3.25-to-1 and a Consolidated Fixed Charge Covenant Ratio of at least 1.25-to-1. | ||
Credit agreement, variable rate description | 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”) | ||
Credit agreement, interest rate | 3.74% | ||
Federal Funds Rate | Senior Secured Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Credit agreement, variable rate basis | 0.50% | ||
One-Month LIBOR Rate | Senior Secured Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Credit agreement, variable rate basis | 1.00% | ||
Eurocurrency Rate | Senior Secured Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Credit agreement, interest payment period, description | last day of each interest period (either one, two, three or six months, as selected by the borrower) | ||
Alternate Base Rate | Senior Secured Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Credit agreement, interest payment period, description | last business day of each month | ||
Maximum | Senior Secured Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Available borrowings capacity under credit agreement | $ 250,000,000 | ||
Consolidated funded debt ratio | 325.00% | ||
Capacity to increase borrowings under credit agreement | $ 26,977,000 | ||
Maximum | Term Loan | |||
Debt Instrument [Line Items] | |||
Accordion feature | $ 100,000,000 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Consolidated fixed charge covenant ratio | 125.00% |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (235) | $ 5,641 | $ 2,124 |
State | (151) | 1,777 | 1,347 |
Foreign | 2,956 | 2,121 | 570 |
Deferred: | |||
Federal | 2,867 | 650 | 160 |
State | 1,548 | (365) | 242 |
Foreign | (1,783) | (679) | |
Total income tax expense (benefit) | $ 5,202 | $ 9,145 | $ 4,443 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 09, 2018 | |
Income Taxes [Line Items] | ||||
Federal Income Tax Rate | 21.00% | 21.00% | 35.00% | |
Interest and penalties related to unrecognized tax benefits accrued | $ 6,877 | $ 2,368 | $ 2,257 | |
Undistributed foreign earnings reinvested | 5,315 | |||
TyraTech Inc. | ||||
Income Taxes [Line Items] | ||||
Federal net operating losses obtained | $ 3,971 | |||
Net operating losses annual limitation | 162 | |||
Net operating losses available over first five years after ownership change | $ 890 |
Total Income Tax Expense Applyi
Total Income Tax Expense Applying U.S. Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Computed tax expense at statutory federal rates | $ 3,993 | $ 7,054 | $ 8,651 |
Increase (decrease) in taxes resulting from: | |||
State taxes, net of federal income tax benefit | 1,131 | 1,627 | 988 |
Domestic production deduction | (150) | ||
Impact of the enactment of the Tax Cuts and Jobs Act (net) | 1,089 | (3,433) | |
Income tax credits | (819) | (689) | (431) |
Foreign tax rate differential | 341 | (37) | (1,503) |
Subpart F income | 14 | 3 | |
(Gain) loss on equity investments | (61) | 62 | |
Stock based compensation | 366 | 277 | 262 |
Global intangible low-taxed income | 249 | ||
Other | (59) | (129) | (6) |
Total income tax expense (benefit) | $ 5,202 | $ 9,145 | $ 4,443 |
Income before provision for inc
Income before provision for income taxes and losses on equity investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 15,465 | $ 26,124 | $ 18,931 |
Foreign | 3,547 | 7,472 | 5,922 |
Income before provision for income taxes and loss on equity method investments | $ 19,012 | $ 33,596 | $ 24,853 |
Temporary Differences in Financ
Temporary Differences in Financial Statement Carrying Amounts and Tax Bases of Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax asset | ||
Inventories | $ 2,912 | $ 3,299 |
State income taxes | 328 | 53 |
Program accrual | 7,529 | 7,088 |
Vacation pay accrual | 756 | 685 |
Accrued bonuses | 599 | 1,246 |
Bad debt expense | 627 | 294 |
Stock compensation | 2,755 | 1,723 |
NOL carryforward | 1,141 | 580 |
Tax credits | 824 | 779 |
Lease liability | 3,308 | |
Other | 209 | 266 |
Deferred tax asset | 20,988 | 16,013 |
Deferred tax liability | ||
Plant and equipment, principally due to differences in depreciation and capitalized interest | 35,545 | 30,269 |
Lease asset | 3,265 | |
Prepaid expenses | 1,323 | 1,107 |
Deferred tax liability | 40,133 | 31,376 |
Total net deferred tax liability | $ 19,145 | $ 15,363 |
Gross Unrecognized Tax Benefits
Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 2,170 | $ 2,118 |
Additions for tax positions related to the current year | 155 | 128 |
Additions for tax positions related to the prior years | 27 | 24 |
Additions for tax positions related to acquired businesses | 2,458 | |
Reduction for tax positions related to the prior years | (213) | (100) |
Balance at end of year | $ 4,597 | $ 2,170 |
Litigation and Environmental -
Litigation and Environmental - Additional Information (Detail) $ in Thousands | Mar. 29, 2016Case | May 31, 2012CasePlaintiffPerson | Jan. 31, 2017USD ($)Case | Dec. 31, 2019USD ($)CasePlaintiffPerson |
United States Lawsuits | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits | 3 | |||
U.S State District Court Chavez | ||||
Loss Contingencies [Line Items] | ||||
Number of claimants | Person | 230 | |||
U.S State District Court Marquinez | ||||
Loss Contingencies [Line Items] | ||||
Number of claimants | Person | 2,700 | |||
Number of Lawsuits Filed | 2 | |||
U.S. State District Court Abad Castillo | Hendler Law Firm | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs required to be dismissed | Plaintiff | 22 | |||
Number of plaintiffs dismissed | 14 | |||
Superior Court Marquinez | ||||
Loss Contingencies [Line Items] | ||||
Number of Lawsuits Filed | 57 | |||
Chaverri | ||||
Loss Contingencies [Line Items] | ||||
Number of claimants | Person | 258 | |||
Harold Reed v. AMVAC et al. | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed | 2 | |||
Reed | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency damages sought, value | $ | $ 250 | |||
Jem Holdings | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency damages sought, value | $ | $ 60 | |||
Cross Claims | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed | 4 | |||
Van Giessen Growers, Inc. | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency estimate of possible loss | $ | $ 400 | |||
Chin Coulee Farms | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency estimate of possible loss | $ | 530 | |||
Houweling Farms | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency estimate of possible loss | $ | $ 4,300 | |||
Nicaraguan | ||||
Loss Contingencies [Line Items] | ||||
Number of claimants | Plaintiff | 3,592 | |||
Nicaraguan | Special Law | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed | 2 | |||
Number of claimants | Plaintiff | 287 | |||
Nicaraguan | Public Law | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed | 85 | |||
Nicaraguan | Compensatory Damages | ||||
Loss Contingencies [Line Items] | ||||
Value of claims paid | $ | $ 1,000 | |||
Nicaraguan | Punitive Damages | ||||
Loss Contingencies [Line Items] | ||||
Value of claims paid | $ | $ 5,000 |
Employee Deferred Compensatio_2
Employee Deferred Compensation Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2001 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 05, 2018 | Jun. 06, 2018 | |
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | ||||||
Percentage contribution, compensation | 100.00% | |||||
Matching percentage, employee contribution | 5.00% | |||||
Company's contributions amount | $ 1,997 | $ 1,914 | $ 1,550 | |||
Common stock under employee stock purchase plan, par value | $ 0.10 | $ 0.10 | $ 0.10 | |||
Shares of common stock purchased through the plan | 47,229 | 35,950 | 34,016 | |||
Employee Stock Purchase Plan | ||||||
Employee Stock Ownership Plan E S O P 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 | |||||
Employee stock purchase plan expiration date | Dec. 31, 2028 | |||||
Commons stock plan available for sale under plan | 995,000 | |||||
Available common stock under plan | 643,630 | 690,859 | 726,809 |
Major Customers and Internati_3
Major Customers and International Sales - Additional Information (Detail) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales | Customer One | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 18.00% | 12.00% | 13.00% |
Sales | Customer Two | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 14.00% | 9.00% | 10.00% |
Sales | Customer Three | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 7.00% | 8.00% | 10.00% |
Receivables | Customer One | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 13.00% | 8.00% | |
Receivables | Customer Two | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 12.00% | 7.00% | |
Receivables | Customer Three | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 6.00% | 5.00% |
Summary of International Sales
Summary of International Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues From External Customers | |||||||||||
Net sales | $ 130,521 | $ 124,884 | $ 113,104 | $ 99,676 | $ 131,338 | $ 111,780 | $ 107,046 | $ 104,108 | $ 468,186 | $ 454,272 | $ 355,047 |
South and Central America | |||||||||||
Revenues From External Customers | |||||||||||
Net sales | 111,106 | 86,172 | 25,748 | ||||||||
Mexico | |||||||||||
Revenues From External Customers | |||||||||||
Net sales | 28,835 | 24,578 | 16,030 | ||||||||
Asia | |||||||||||
Revenues From External Customers | |||||||||||
Net sales | 15,554 | 14,828 | 28,880 | ||||||||
Canada | |||||||||||
Revenues From External Customers | |||||||||||
Net sales | 11,637 | 3,403 | 4,083 | ||||||||
Europe | |||||||||||
Revenues From External Customers | |||||||||||
Net sales | 6,889 | 11,059 | 10,700 | ||||||||
Africa | |||||||||||
Revenues From External Customers | |||||||||||
Net sales | 6,750 | 8,027 | 7,893 | ||||||||
Australia | |||||||||||
Revenues From External Customers | |||||||||||
Net sales | 2,798 | 2,635 | 4,334 | ||||||||
Middle East | |||||||||||
Revenues From External Customers | |||||||||||
Net sales | 2,392 | 3,256 | 1,237 | ||||||||
International | |||||||||||
Revenues From External Customers | |||||||||||
Net sales | $ 185,961 | $ 153,958 | $ 98,905 |
Royalty Expenses - Additional I
Royalty Expenses - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)LicenseAgreement | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Royalty expense | $ | $ 137 | $ 86 | $ 81 |
Number of license agreements minimum annual royalty | 2 | ||
Number of license agreements royalty percentage of annual sales | 2 |
Product and Business Acquisit_3
Product and Business Acquisitions - Additional Information (Detail) $ in Thousands | Dec. 20, 2019USD ($) | Jul. 01, 2019USD ($) | Jan. 10, 2019USD ($)Business | Nov. 08, 2018USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2019USD ($)Business | Dec. 31, 2018USD ($)BusinessProductline | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||
Business combination, cash consideration | $ 10,000 | $ 37,972 | $ 19,851 | $ 81,896 | ||||
Business combination, number of businesses acquired | Business | 3 | 4 | ||||||
Business combination, cash acquired | $ 981 | $ 1,600 | ||||||
Business combination, deferred consideration paid | 3,051 | 10,659 | ||||||
Business combination, liabilities assumed | 1,407 | 19,867 | 1,750 | |||||
Business combination, captalized cost in asset acquisition | 6 | 14 | 108 | |||||
Business combination, total consideration | 60,904 | 27,283 | 92,555 | |||||
Business combination, allocation of purchase price, goodwill | 46,557 | 25,790 | 22,184 | |||||
Business combination, allocation of purchase price, working capital and fixed assets | 10,432 | |||||||
Business combination, allocation purchase price, indemnification assets | 3,384 | |||||||
Business combination, liabilities assumed, tax | 12,814 | |||||||
Business combination, allocation of purchase price, inventory | 5,461 | |||||||
Business combination, fair value of Company's pre-existing ownership position | 2,044 | |||||||
Business combination, allocation of purchase price, working capital | 121 | 14,679 | ||||||
Business combination, allocation of purchase price, property, plant and equipment | 27 | 512 | ||||||
Business combination, allocation of purchase price, deferred tax assets | 1,610 | |||||||
business combination, reduction in goodwill | 348 | |||||||
Product Lines Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, cash consideration | $ 7,293 | |||||||
Business combination, liabilities assumed | 300 | |||||||
Business combination, captalized cost in asset acquisition | 8 | |||||||
Business combination, allocation of purchase price, inventory | 1,293 | |||||||
Business combination, contingent combination from one of the asset acquisitions | 12,500 | |||||||
Defensive and Agrovant | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, cash consideration | $ 20,679 | |||||||
Business combination, number of businesses acquired | Business | 2 | |||||||
Business combination, cash acquired | $ 981 | |||||||
Business combination, deferred consideration paid | 3,051 | |||||||
Business combination, liabilities assumed | 18,160 | |||||||
Business combination, total consideration | 41,890 | |||||||
Business combination, allocation of purchase price, goodwill | 22,652 | 22,652 | ||||||
Business combination, allocation of purchase price, working capital and fixed assets | 9,139 | |||||||
Business combination, allocation purchase price, indemnification assets | 3,384 | |||||||
Business combination, liabilities assumed, tax | 9,111 | |||||||
E.I DuPont et Nemours and Company and BayerCropScience | Product Lines Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, cash consideration | 21,335 | |||||||
Business combination, captalized cost in asset acquisition | 108 | |||||||
Business combination, allocation of purchase price, inventory | $ 5,378 | |||||||
Business combination, cash consideration | $ 3,530 | |||||||
Business combination, number of product lines acquired | Productline | 3 | |||||||
TyraTech Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, cash consideration | $ 2,154 | |||||||
Business combination, cash acquired | $ 1,600 | |||||||
Business combination, liabilities assumed | $ 1,750 | |||||||
Business combination, allocation purchase price of intangible assets | 180 | |||||||
Business combination, allocation of purchase price, goodwill | 3,927 | |||||||
Business combination, allocation of purchase price, working capital | 115 | |||||||
Business combination, allocation of purchase price, property, plant and equipment | 27 | |||||||
Business combination, allocation of purchase price, deferred tax assets | 1,610 | |||||||
Business combination, percentage of ownership | 65.62% | |||||||
Business combination, allocation of purchase price, other assets | 89 | |||||||
Business combination, percentage of pre-existing ownership | 34.38% | |||||||
Business combination, recorded gain on step up the value of ownership | $ 1,463 | |||||||
E.I DuPont et Nemours and Company | Product Lines Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, number of product lines acquired | Productline | 1 | |||||||
Bayer | Product Lines Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, number of product lines acquired | Productline | 2 | |||||||
Product Registrations and Product Rights | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, allocation purchase price of intangible assets | 8,171 | 13,279 | $ 12,720 | 55,127 | ||||
Product Registrations and Product Rights | Product Lines Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, allocation purchase price of intangible assets | 5,108 | |||||||
Trade Names, Trademarks and Patents | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, allocation purchase price of intangible assets | $ 3,242 | 5,452 | 2,678 | 9,500 | ||||
Trade Names, Trademarks and Patents | Product Lines Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, allocation purchase price of intangible assets | $ 1,200 | |||||||
Trade Names, Trademarks and Patents | Defensive and Agrovant | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, allocation purchase price of intangible assets | 1,010 | |||||||
Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, allocation purchase price of intangible assets | $ 5,705 | |||||||
Customer Relationships | Defensive and Agrovant | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, allocation purchase price of intangible assets | $ 5,705 | |||||||
Customer Lists | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, allocation purchase price of intangible assets | $ 739 | |||||||
Customer Relationships and Customer Lists | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, allocation purchase price of intangible assets | $ 3,700 |
Summary of Pro Forma Financial
Summary of Pro Forma Financial Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Business Combinations [Abstract] | |
Pro forma net sales | $ | $ 458,793 |
Pro forma net income | $ | $ 24,540 |
Pro forma earnings per common share – basic | $ / shares | $ 0.84 |
Pro forma earnings per common share – assuming dilution | $ / shares | $ 0.83 |
Schedule of Intangible Assets R
Schedule of Intangible Assets Recognized in Connection with Product Acquisitions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | |||
Beginning Balance | $ 186,583 | $ 180,950 | $ 121,433 |
Additions | 25,368 | 16,429 | 68,327 |
Write offs | (264) | ||
Impact of movement in exchange rates | (1,158) | (45) | (6) |
Amortization expense | (12,152) | (10,751) | (8,804) |
Ending Balance | 198,377 | 186,583 | 180,950 |
Goodwill at December 31, 2018 | 25,790 | 22,184 | |
Net additions during fiscal 2019 | 22,652 | ||
Impact of movement in exchange rates | (1,885) | ||
Goodwill at December 31, 2019 | 46,557 | 25,790 | $ 22,184 |
Intangible assets and goodwill at Year End | $ 244,934 | $ 212,373 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Deferred consideration, Other Liability | $ 1,790 |
Product Registrations | |
Finite Lived Intangible Assets [Line Items] | |
Expected useful life | 25 years |
Trademarks | |
Finite Lived Intangible Assets [Line Items] | |
Expected useful life | 25 years |
Customer Lists | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Expected useful life | 9 years |
Customer Lists | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Expected useful life | 10 years |
Schedule of Gross Carrying Amou
Schedule of Gross Carrying Amount and Accumulated Amortization of Intangible Assets and Goodwill (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 297,609 | $ 273,696 |
Accumulated Amortization | 99,232 | 87,113 |
Net Book Value | 198,377 | 186,583 |
Gross | 344,166 | 299,486 |
Net Book Value | 244,934 | 212,373 |
Goodwill | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 46,557 | 25,790 |
Net Book Value | 46,557 | 25,790 |
Product Registrations | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 252,786 | 235,684 |
Accumulated Amortization | 89,204 | 79,627 |
Net Book Value | 163,582 | 156,057 |
Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 32,795 | 30,483 |
Accumulated Amortization | 6,633 | 5,337 |
Net Book Value | 26,162 | 25,146 |
Customer Lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 12,028 | 7,529 |
Accumulated Amortization | 3,395 | 2,149 |
Net Book Value | $ 8,633 | $ 5,380 |
Schedule of Future Amortization
Schedule of Future Amortization Charges Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
2020 | $ 12,768 | |||
2021 | 12,619 | |||
2022 | 12,498 | |||
2023 | 11,988 | |||
2024 | 11,690 | |||
Thereafter | 136,814 | |||
Net Book Value | $ 198,377 | $ 186,583 | $ 180,950 | $ 121,433 |
Schedule of Company's Deferred
Schedule of Company's Deferred Consideration Liability Under Acquisitions Agreements (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | |||
Beginning Balance | $ 3,866 | $ 11,334 | $ 592 |
Additional obligations acquired | 3,051 | 10,659 | |
Adjustment to deferred consideration within the measurement period | (1,697) | ||
Reassessment of deferred consideration | (4,120) | (6,050) | |
Accretion of discounted liabilities | 72 | 345 | 109 |
Payments on existing obligations | (850) | (66) | (26) |
Foreign exchange effect | (229) | ||
Ending Balance | $ 1,790 | $ 3,866 | $ 11,334 |
Research and Development - Addi
Research and Development - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Research And Development [Line Items] | |||
Research and development expenses | $ 24,070 | $ 26,428 | $ 26,076 |
Operating expenses | |||
Schedule Of Research And Development [Line Items] | |||
Research and development expenses | $ 8,906 | $ 9,164 | $ 8,455 |
Equity Plan Awards - Additional
Equity Plan Awards - Additional Information (Detail) - USD ($) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 7,160,000 | $ 5,805,000 | $ 4,714,000 | |
Incentive Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
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% | |||
Option Exercisable Maximum Period | 10 years | |||
Incentive Stock Option Plans, Options granted | 0 | 0 | 0 | |
Stock-based compensation | $ 0 | $ 0 | $ 345,000 | |
Nonstatutory Stock Options (“NSSO”) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Incentive Stock Option Plans, Options granted | 0 | |||
Common Stock Grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 3,655,000 | $ 3,272,000 | $ 2,355,000 | |
Number of Shares, Vested | 148,240 | 53,304 | ||
Weighted Average Grant-Date Fair Value, Granted | $ 16.84 | $ 20.21 | $ 16.24 | |
Number of forfeited common stock that is granted | 60,778 | 33,269 | ||
Number of Shares, Granted | 341,653 | 282,030 | ||
Unamortized Stock-Based Compensation | $ 5,512,000 | $ 5,006,000 | $ 3,628,000 | $ 5,512,000 |
Remaining Weighted Average Period (years) | 1 year 10 months 24 days | 1 year 3 months 18 days | 1 year | |
Common Stock Grants | Employees and Non-Executive Board Members | Vested immediately | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Vested | 33,973 | 25,312 | ||
Common Stock Grants | Employees and Non-Executive Board Members | Vest 6 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares expected to vest | 500 | 1,017 | 500 | |
Period of service before cliff vesting | 6 months | 6 months | ||
Common Stock Grants | Employees and Non-Executive Board Members | vest one year | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares expected to vest | 1,000 | 1,000 | ||
Period of service before cliff vesting | 1 year | |||
Common Stock Grants | Employees and Non-Executive Board Members | Vest two year | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares expected to vest | 500 | 5,250 | 500 | |
Period of service before cliff vesting | 2 years | 2 years | ||
Common Stock Grants | Employees and Non-Executive Board Members | Vesting Period Nine | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares expected to vest | 15,001 | 15,001 | ||
Period of service before cliff vesting | 3 years | |||
Common Stock Grants | Employees and Non-Executive Board Members | After Three Years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of service before cliff vesting | 3 years | 3 years | ||
Common Stock Grants | Employees and Non-Executive Board Members | Vest eighteen months | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares expected to vest | 1,017 | |||
Period of service before cliff vesting | 18 months | |||
Common Stock Grants | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
The total fair value recognized over the vesting period | $ 5,754,000 | $ 5,651,000 | ||
Number of forfeited common stock that is granted | 60,778 | 33,269 | ||
Common Stock Grants | Common Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Grant-Date Fair Value, Granted | $ 13.09 | $ 16.85 | ||
Common Stock Grants | Common Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Grant-Date Fair Value, Granted | $ 17.34 | $ 23.60 | ||
Common Stock Grants | Common Stock | Employees and Non-Executive Board Members | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued by equity investee | 341,653 | 282,030 | ||
Restricted Stock and Unrestricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 4,066,000 | $ 3,657,000 | $ 2,705,000 | |
Performance Based Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 3,094,000 | $ 2,148,000 | $ 1,248,000 | |
Number of Shares, Vested | 92,572 | 22,857 | ||
Weighted Average Grant-Date Fair Value, Granted | $ 16.96 | $ 18.74 | $ 15.43 | |
Number of forfeited common stock that is granted | 28,998 | 6,455 | ||
Number of Shares, Granted | 137,557 | 130,332 | 128,594 | |
Targeted performance percentage | 200.00% | 200.00% | 200.00% | 200.00% |
Additional expenses recognized | $ 0 | |||
Number of Share, Additional granted based on performance | 42,368 | |||
Unamortized Stock-Based Compensation | $ 2,835,000 | $ 2,565,000 | $ 1,642,000 | $ 2,835,000 |
Remaining Weighted Average Period (years) | 1 year 10 months 24 days | 1 year 9 months 18 days | 1 year 8 months 12 days | |
Performance Based Restricted Stock | Vested on March 28, 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cliff vesting date | Mar. 28, 2022 | |||
Performance Based Restricted Stock | 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, 2019 through December 31, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vesting based on Performance | 80.00% | |||
Earnings before income taxes goal weight, percentage | 50.00% | |||
Net sales goal weight, percentage | 30.00% | |||
Performance Based Restricted Stock | Performance Based Shares Based Upon AVD Stock Price Appreciation Over the Course of the Period Commencing January 1, 2019 through December 31, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Earnings before income taxes goal weight, percentage | 20.00% | |||
Performance Based Restricted Stock | Vested on March 9, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cliff vesting date | Mar. 9, 2021 | |||
Performance Based Restricted Stock | 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, 2018 and ending December 31, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vesting based on Performance | 80.00% | |||
Earnings before income taxes goal weight, percentage | 50.00% | |||
Net sales goal weight, percentage | 30.00% | |||
Performance Based Restricted Stock | Performance Based Shares Based Upon AVD Stock Price Appreciation Over the Course of the Period Commencing January 1, 2018 and ending December 31, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Earnings before income taxes goal weight, percentage | 20.00% | |||
Performance Based Restricted Stock | Vested on February 8, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cliff vesting date | Feb. 8, 2020 | |||
Performance Based Restricted Stock | 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, 2017 and ending December 31, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vesting based on Performance | 80.00% | |||
Earnings before income taxes goal weight, percentage | 50.00% | |||
Net sales goal weight, percentage | 30.00% | |||
Performance Based Restricted Stock | Performance Based Shares Based Upon AVD Stock Price Appreciation Over the Course of the Period Commencing January 1, 2017 and ending December 31, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Earnings before income taxes goal weight, percentage | 20.00% | |||
Performance Based Restricted Stock | Performance Based Shares Related to Net Income Weighted at 50%, Net Sales Weighted at 30%, Commencing January 1, 2019 and Ending December 31, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Grant-Date Fair Value, Granted | $ 17.34 | |||
Performance Based Restricted Stock | Remaining 20% of Performance Based Shares are Based Upon AVD Stock Price Appreciation for the Period Commencing January 1, 2019 and Ending December 31, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Grant-Date Fair Value, Granted | $ 15.46 | |||
Performance Based Restricted Stock | Performance Based Shares Related to Net Income Weighted at 50%, Net Sales Weighted at 30%, Commencing January 1, 2018 and Ending December 31, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Grant-Date Fair Value, Granted | $ 19.95 | |||
Performance Based Restricted Stock | Remaining 20% of Performance Based Shares are Based Upon AVD Stock Price Appreciation for the Period Commencing January 1, 2018 and Ending December 31, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Grant-Date Fair Value, Granted | $ 16.49 | |||
Performance Based Restricted Stock | Performance Based Shares Related to Net Income Weighted at 50%, Net Sales Weighted at 30%, Commencing January 1, 2017 and Ending December 31, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Grant-Date Fair Value, Granted | $ 16.10 | |||
Performance Based Restricted Stock | Remaining 20% of Performance Based Shares are Based Upon AVD Stock Price Appreciation for the Period Commencing January 1, 2017 and Ending December 31, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Grant-Date Fair Value, Granted | $ 12.60 | |||
Performance Based Restricted Stock 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target performance percentage to meet performance incentive stock options based on market | 125.00% | |||
Performance Based Restricted Stock 2017 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target performance percentage to meet performance incentive stock options based on market | 50.00% | |||
Performance Based Restricted Stock 2018 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target performance percentage to meet performance incentive stock options based on market | 125.00% | |||
Additional expenses recognized | $ 0 | |||
Target performance percentage to meet performance incentive stock options based on EBIT and net sales | 125.00% | |||
Unvested Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unamortized Stock-Based Compensation | $ 2,835,000 | $ 2,835,000 | ||
Remaining Weighted Average Period (years) | 1 year 10 months 24 days | |||
Equity Incentive Plan 1993 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of securities remaining available for future issuance | 1,171,059 | 1,171,059 | ||
Incentive Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total intrinsic value of options exercised | $ 393,000 | $ 955,000 | $ 545,000 | |
Cash received from stock option exercised | $ 454,000 | $ 951,000 | 468,000 | |
Number of shares expected to vest | 332,823 | 384,064 | 332,823 | |
Performance Based Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 0 | $ 0 | $ 416,000 | |
Number of shares expected to vest | 77,598 | |||
Number of Shares, Granted | 0 |
Summary of Option Activity (Det
Summary of Option Activity (Detail) - Incentive Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incentive Stock Option Plans, Beginning balance | 384,064 | 472,783 | 541,905 |
Incentive Stock Option Plans, Option exercised | (51,241) | (88,719) | (55,979) |
Incentive Stock Option Plans, Option forfeited | (13,143) | ||
Incentive Stock Option Plans, Ending balance | 332,823 | 384,064 | 472,783 |
Weighted Average Price Per Share, Beginning balance | $ 9.10 | $ 9.38 | $ 9.33 |
Weighted Average Price Per Share, Option exercised | 8.87 | 10.62 | 8.37 |
Weighted Average Price Per Share, Option forfeited | 11.49 | ||
Weighted Average Price Per Share, Ending balance | 9.14 | 9.10 | 9.38 |
Exercisable Weighted Average Price Per Share, Beginning balance | 9.10 | 9.38 | 7.97 |
Exercisable Weighted Average Price Per Share, Ending balance | $ 9.14 | $ 9.10 | $ 9.38 |
Summary of Stock Options Summar
Summary of Stock Options Summarized by Exercise Price (Detail) - Incentive Stock Options - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding Weighted Average, Shares | 332,823 | |||
Outstanding Weighted Average, Remaining Life (Months) | 42 months | |||
Outstanding Weighted Average, Exercise Price | $ 9.14 | $ 9.10 | $ 9.38 | $ 9.33 |
Exercisable Weighted Average, Shares | 332,823 | |||
Exercisable Weighted Average, Exercise Price | $ 9.14 | $ 9.10 | $ 9.38 | $ 7.97 |
Range One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Price Per Share, Lower Range | $ 7.50 | |||
Outstanding Weighted Average, Shares | 195,850 | |||
Outstanding Weighted Average, Remaining Life (Months) | 11 months | |||
Outstanding Weighted Average, Exercise Price | $ 7.50 | |||
Exercisable Weighted Average, Shares | 195,850 | |||
Exercisable Weighted Average, Exercise Price | $ 7.50 | |||
Range Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Price Per Share, Lower Range | 11.32 | |||
Exercise Price Per Share, Upper Range | $ 14.75 | |||
Outstanding Weighted Average, Shares | 136,973 | |||
Outstanding Weighted Average, Remaining Life (Months) | 58 months | |||
Outstanding Weighted Average, Exercise Price | $ 11.48 | |||
Exercisable Weighted Average, Shares | 136,973 | |||
Exercisable Weighted Average, Exercise Price | $ 11.48 |
Weighted Average Exercise Price
Weighted Average Exercise Prices for Options Granted and Exercisable and Weighted Average Remaining Contractual Life for Options Outstanding (Detail) - Incentive Stock Option Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 332,823 | 384,064 |
Number of Shares, Vested | 332,823 | 384,064 |
Number of Shares, Exercisable | 332,823 | 384,064 |
Weighted Average Exercise Price, Outstanding | $ 9.14 | $ 9.10 |
Weighted Average Exercise Price, Vested | 9.14 | 9.10 |
Weighted Average Exercise Price, Exercisable | $ 9.14 | $ 9.10 |
Weighted Average Remaining Life, Outstanding | 30 months | 42 months |
Weighted Average Remaining Contractual Life, Vested | 30 months | 42 months |
Weighted Average Remaining Contractual Life, Exercisable | 30 months | 42 months |
Intrinsic Value, Outstanding | $ 3,439 | $ 2,338 |
Intrinsic Value, Vested | 3,439 | 2,338 |
Intrinsic Value, Exercisable | $ 3,439 | $ 2,338 |
Summary of Non-Vested Shares (D
Summary of Non-Vested Shares (Detail) - Common Stock Grants - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Beginning balance | 587,210 | 391,753 | |
Number of Shares, Granted | 341,653 | 282,030 | |
Number of Shares, Vested | (148,240) | (53,304) | |
Number of Shares, Forfeited | (60,778) | (33,269) | |
Number of Shares, Ending Balance | 719,845 | 587,210 | 391,753 |
Weighted Average Grant-Date Fair Value, Beginning balance | $ 17.59 | $ 15.61 | |
Weighted Average Grant-Date Fair Value, Granted | 16.84 | 20.21 | $ 16.24 |
Weighted Average Grant-Date Fair Value, Vested | 14.99 | 17.06 | |
Weighted Average Grant-Date Fair Value, Forfeited | 18.12 | 17.29 | |
Weighted Average Grant-Date Fair Value, Ending balance | $ 17.67 | $ 17.59 | $ 15.61 |
Status Summary of Non-Vested Sh
Status Summary of Non-Vested Shares (Detail) - Performance Based Restricted Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Beginning balance | 287,077 | 186,057 | |
Number of Shares, Granted | 137,557 | 130,332 | 128,594 |
Number of Share, Additional granted based on performance | 42,368 | ||
Number of Shares, Vested | (92,572) | (22,857) | |
Number of Shares, Forfeited | (28,998) | (6,455) | |
Number of Shares, Ending Balance | 345,432 | 287,077 | 186,057 |
Weighted Average Grant-Date Fair Value, Beginning balance | $ 16.87 | $ 14.93 | |
Weighted Average Grant-Date Fair Value, Granted | 16.96 | 18.74 | $ 15.43 |
Weighted Average Grant-Date Fair Value, Additional granted based on performance | 12.97 | ||
Weighted Average Grant-Date Fair Value, Vested | 14.78 | 11.90 | |
Weighted Average Grant-Date Fair Value, Forfeited | 17.70 | 16.22 | |
Weighted Average Grant-Date Fair Value, Ending balance | $ 16.92 | $ 16.87 | $ 14.93 |
Summary of Performance option a
Summary of Performance option activity (Detail) - Performance Based Stock Options - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incentive Stock Option Plans, Beginning balance | 140,411 | 81,666 |
Incentive Stock Option Plans, Additional vesting based on performance | 77,598 | |
Incentive Stock Option Plans, Option exercised | (19,629) | (18,853) |
Incentive Stock Option Plans, Ending balance | 120,782 | 140,411 |
Weighted Average Price Per Share, Beginning balance | $ 11.49 | $ 11.49 |
Weighted Average Price Per Share, Additional vesting based on performance | 11.49 | |
Weighted Average Price Per Share, Option exercised | 11.49 | 11.49 |
Weighted Average Price Per Share, Ending balance | 11.49 | 11.49 |
Exercisable Weighted Average Price Per Share, Beginning balance | 11.49 | 11.49 |
Exercisable Weighted Average Price Per Share, Additional vesting based on performance | 11.49 | |
Exercisable Weighted Average Price Per Share, Option exercised | 11.49 | 11.49 |
Exercisable Weighted Average Price Per Share, Ending balance | $ 11.49 | $ 11.49 |
Performance Options Summarized
Performance Options Summarized by Exercise Price (Detail) - Performance Incentive Stock Option Plan - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Weighted Average, Shares | 120,782 | |
Outstanding Weighted Average, Remaining Life (Months) | 60 months | 72 months |
Outstanding Weighted Average, Exercise Price | $ 11.49 | $ 11.49 |
Exercisable Weighted Average, Shares | 120,782 | 140,411 |
Exercisable Weighted Average, Exercise Price | $ 11.49 | $ 11.49 |
Performance Option Weighted Ave
Performance Option Weighted Average Exercise Prices for Options Granted and Exercisable and Weighted Average Remaining Contractual Life for Options Outstanding (Detail) - Performance Incentive Stock Option Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 120,782 | 140,411 |
Number of Shares, Vested | 120,782 | 140,411 |
Number of Shares, Exercisable | 120,782 | 140,411 |
Weighted Average Exercise Price, Outstanding | $ 11.49 | $ 11.49 |
Weighted Average Exercise Price, Vested | 11.49 | 11.49 |
Weighted Average Exercise Price, Exercisable | $ 11.49 | $ 11.49 |
Weighted Average Remaining Life, Outstanding | 60 months | 72 months |
Weighted Average Remaining Contractual Life, Vested | 60 months | 72 months |
Weighted Average Remaining Contractual Life, Exercisable | 60 months | 72 months |
Intrinsic Value, Outstanding | $ 964 | $ 520 |
Intrinsic Value, Vested | 964 | 520 |
Intrinsic Value, Exercisable | $ 964 | $ 520 |
Beginning Balance, Annual Activ
Beginning Balance, Annual Activity and Ending Balance of Foreign Currency Translation Adjustment Included as Component of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 329,230 | $ 282,357 |
Foreign currency translation adjustment | (1,191) | 344 |
Balance | 344,156 | 305,314 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (4,507) | (4,851) |
Foreign currency translation adjustment | (1,191) | 344 |
Balance | $ (5,698) | $ (4,507) |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 09, 2018 | Jul. 07, 2017 | Jun. 27, 2017 | Nov. 08, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 02, 2016 |
Equity Method Investments [Line Items] | ||||||||
Gain (loss) from equity method investment | $ (209) | $ (389) | $ (49) | |||||
Investment | $ 950 | 950 | ||||||
Joint venture, consideration | 60,904 | 27,283 | 92,555 | |||||
Profeng Australia, Pty Ltd | ||||||||
Equity Method Investments [Line Items] | ||||||||
Joint venture, consideration | $ 1,900 | |||||||
TyraTech Inc. | ||||||||
Equity Method Investments [Line Items] | ||||||||
Gain (loss) from equity method investment | $ 1,463 | $ (1,424) | $ (177) | |||||
Equity investment ownership position | 15.11% | |||||||
Huifeng/AMVAC Innovation Co., Ltd. | ||||||||
Equity Method Investments [Line Items] | ||||||||
Equity investment ownership position | 50.00% | |||||||
Hong Kong JV | ||||||||
Equity Method Investments [Line Items] | ||||||||
Gain (loss) from equity method investment | $ (209) | $ (356) | $ 128 | |||||
Equity investment ownership position | 50.00% | 50.00% | ||||||
Carrying value of equity investment | $ 513 | $ 722 |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Detail) - Bi Pa - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 29, 2016 |
Equity Method Investments [Line Items] | |||
Carrying value of equity investment | $ 3,283 | ||
Cost method ownership percentage | 15.00% | 15.00% |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | Nov. 05, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Class Of Treasury Stock [Line Items] | ||||||
Common stock, par value | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | ||
Amount paid for common shares purchase | $ 2,604,000 | $ 7,287,000 | ||||
Common Stock | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Number of shares intended to repurchase under repurchase program | $ 2,604,000 | $ 3,921,000 | $ 3,366,000 | $ 2,604,000 | $ 7,287,000 | |
Shares repurchase program, expiration date | Mar. 8, 2019 | |||||
Number of shares purchased | 158,048 | 255,500 | 196,858 | 158,048 | 452,358 | |
Average price paid per share | $ 16.48 | $ 15.35 | $ 17.10 | $ 16.48 | $ 16.11 | |
Common Stock | Maximum | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Number of shares intended to repurchase under repurchase program | $ 20,000 |
Summary of Number of Shares of
Summary of Number of Shares of Common Stock Repurchased (Detail) - Common Stock - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity Class Of Treasury Stock [Line Items] | |||||
Total number of shares purchased | 158,048 | 255,500 | 196,858 | 158,048 | 452,358 |
Average price paid per share | $ 16.48 | $ 15.35 | $ 17.10 | $ 16.48 | $ 16.11 |
Total amount paid | $ 2,604 | $ 3,921 | $ 3,366 | $ 2,604 | $ 7,287 |
Schedule of Selected Unaudited
Schedule of Selected Unaudited Statement of Operations Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 130,521 | $ 124,884 | $ 113,104 | $ 99,676 | $ 131,338 | $ 111,780 | $ 107,046 | $ 104,108 | $ 468,186 | $ 454,272 | $ 355,047 |
Gross profit | 46,536 | 47,463 | 41,653 | 41,702 | 52,983 | 45,300 | 43,297 | 41,051 | 177,354 | 182,631 | 147,392 |
Net income attributable to American Vanguard | $ 3,436 | $ 3,153 | $ 3,106 | $ 3,906 | $ 7,416 | $ 6,525 | $ 5,599 | $ 4,655 | $ 13,601 | $ 24,195 | $ 20,274 |
Basic net income per share | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.13 | $ 0.25 | $ 0.22 | $ 0.19 | $ 0.16 | $ 0.47 | $ 0.83 | $ 0.70 |
Diluted net income per share | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.13 | $ 0.25 | $ 0.22 | $ 0.19 | $ 0.16 | $ 0.46 | $ 0.81 | $ 0.68 |
Forward Cover Contract - Additi
Forward Cover Contract - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative financial instruments gain or loss | $ (1,401,000) | ||
Foreign Exchange Forward Cover Contract | Defensive and Agrovant | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative financial instruments gain or loss | $ 0 | $ (1,401,000) | $ 0 |